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2014 (7) TMI 753 - HC - Income TaxInterest expenses disallowed u/s 36(1)(iii) Held that:- The assessee was having interest-free funds far in excess of investments, it can be said that the investments are made out of interest-free funds - the AO was not justified in making additions and/or making disallowance u/s 36(1)(iii) of the IT Act Relying upon CIT v. Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - HIGH COURT BOMBAY] - no error and/or illegality has been committed by the Tribunal in deleting the disallowance made by the AO u/s 36(1)(iii) of the IT Act no substantial question of law arises for consideration Decided against Revenue. Interest and other expenses incurred for exempted income u/s 14A Held that:- The assessee was having sufficient profit and interest free funds in comparison to the investments and with respect to mutual fund transactions, no interest has been charged by the bank except security transaction tax and considering the above when the deductions u/s 14A of the IT Act was restricted to ₹ 64,909/-, it cannot be said that both CIT(A) and Tribunal have committed any error Relying upon CIT v. Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - HIGH COURT BOMBAY] - the order of the Tribunal is upheld Decided against Revenue.
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