Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 407 - ITAT MUMBAIDisallowance of interest u/s 14A – The assessee has earned interest income of Rs.10,50,00,000/- on tax free bonds which is exempt u/s 10(15) – Held that:- The assessee at the relevant time had its own funds in the form of share capital and reserve amounting to Rs.703 crores which were far exceeding the investment of Rs.10.50 crores made by the assessee in tax free bonds - The said investment in tax free funds was made by the assessee out of its own funds – The assessee has not incurred any expenditure on investment in tax free bonds - Following Reliance Utilities Power Ltd. [2009 (1) TMI 4 - HIGH COURT BOMBAY] - When there is a common pool of funds it is presumed that investment yielding tax free returns is made by the assessee out of its own funds – Decided against Revenue.
|