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2014 (2) TMI 316 - AT - Income TaxDisallowance of interest - Held that:- Relying upon the decision in CIT vs. Reliance Utilities and Power Ltd [2009 (1) TMI 4 - HIGH COURT BOMBAY] - If there are funds available, both interest free and overdraft/loans taken, then presumption would arise that investments would be out of the interest free fund generated or available with the assessee - The assesse has failed to prove that on the particular dates of investments/ advancement of loans to the family members, sufficient own funds were available with it - The assesse had submitted before the AO that the Assessee's capital as on 31.3.2008 was Rs.7.72 Crores and the profit during the year was at Rs.1.95 crores - The assessee had sufficient own capital - The assessee's own capital and loans were in circulation during the year as the assessee had also been engaged in the business of money lending - The issue has been restored for fresh adjduication. Disallowance u/s 40(a)(ia) - Held that:- Relying upon the decision in Smt. Prabhavati S.Shah v. CIT [1998 (2) TMI 107 - BOMBAY High Court] - The powers conferred on the first appellate authority under sub-section (4) of section 250 of the Act, being a quasi-judicial power, it is incumbent on him to exercise the same, if the facts and circumstances justify - The CIT(A) has failed to exercise his appellate jurisdiction u/s 250 of the Act - The learned CIT(A) didnot admit and consider the evidence produced before him by the assessee - The documents relied upon by the assessee are very much relevant and necessary for the just and proper decision of the case - The issue has been restored for fresh adjudication.
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