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2015 (1) TMI 152 - AT - Income TaxDisallowance u/s. 14A - Proportionate interest expenses for earning tax free income Held that:- The AO has noted that assessee had made investments of ₹ 2.63 cores in DSPMC fund - assessee has pointed to the balance sheet as at 31st March, 2006 and pointed to the fact that the share capital of the partners as on 31st March, 2006 was in excess of ₹ 11.86 cores as against the investments of ₹ 2.63 crore in Reliance and Power Ltd vs. CIT [2009 (1) TMI 4 - HIGH COURT BOMBAY] it has been held that if there are interest free funds available to a assessee sufficient to meet its investment and at the same time the assessee has raised a loan it can be presumed that the investments were from interest free funds available - Revenue has not placed any material on record to controvert the submissions made by the Assessee and had also not brought on record any binding contrary decision in its support - no disallowance u/s. 14A on account of interest can be made Decided in favour of assessee. Depreciation claimed on motorcar disallowed Car used for wholly and exclusively for business purpose or not Held that:- Assessee has submitted that assessee was allowed depreciation on the same car in immediately preceding financial year by CIT(A) and Revenue has not preferred appeal against the order of CIT(A) - Assessee from the bank statement of the firm has also demonstrated that the funds of the firm has been used for the purpose of purchase of car and further the car is also reflected in the balance sheet of the firm - the claim of the depreciation cannot be denied to the assessee Decided in favour of assessee.
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