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2016 (9) TMI 1654 - AT - Income TaxDisallowance of interest u/s 14A - addition to the extent of 0.50% of average investment towards expenditure for administrative purposes - Sufficiency of own fund - interest-free funds available or not? - HELD THAT:- This matter has continuously arisen in various years in assessee’s own case and has already been settled in favour of the assessee in assessee’s own case [2014 (7) TMI 503 - ITAT MUMBAI], [2014 (7) TMI 763 - ITAT MUMBAI] if the assessee has huge funds which also consist of interest free funds, then presumption would be that investments have been made out of interest free funds, available with the assessee and, therefore, interest cost cannot be made attributable. Thus a perusal of the same shows that the net worth of the assessee as on 31.03.2010 is far more than the exempt yielding investments made by the assessee as on that date. Decided in favour of assessee.
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