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2015 (10) TMI 1888 - AT - Income TaxDisallowance made on the component of interest under section 14A - CIT(A) deleted the disallowance in part - Held that:- No valid reason to interfere with his findings in partly deleting the disallowance made under section 14A of the Act and conclusion it is presumed that the appellant had made investments only out of the surplus funds available from the earlier years. Respectfully following the decision of the High Court of Bombay in the case of HDFC Bank Ltd. (2014 (8) TMI 119 - BOMBAY HIGH COURT), decision of the learned CIT(Appeals) in the appellant's own case for the A.Y. 2009-10, I am fully convinced that the AO has legally erred in making disallowance on the component of interest. AO has correctly applied the provisions of sec.14A read with Rule 8D and applied 0.5% of average investments which work out to ₹ 35,18,000/- which is reasonable and justifiable. This ground of appeal, as it relates to disallowance of 0.5% of average investments as expenditure is confirmed The Revenue also did not rebut the findings of the Commissioner of Income Tax (Appeals) with evidences. Thus, we sustain the order of the Commissioner of Income Tax (Appeals) and reject the grounds of appeal raised by the Revenue. As we have sustained the order of the Commissioner of Income Tax (Appeals), the cross objection filed by the assessee challenging the impugned order in sustaining the disallowance to the extent of 0.5% of average investments is also dismissed. - Decided partly in favour of assessee.
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