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2019 (2) TMI 2089 - AT - Income TaxAddition u/s. 14A r.w. Rule 8D - as contended that assessee company was having sufficient interest free fund for making investment and CIT(A) has erred in sustaining the impugned addition - HELD THAT:- As demonstrated from the material on record that the assessee was having sufficient interest free fund in the form of share capital and free reserves as against the investment made from which exempt income was earned. After considering the decision of Reliance Utilities Power Ltd, [2009 (1) TMI 4 - BOMBAY HIGH COURT] we consider that there was no merit in disallowing the interest expenses . However, we sustain the addition in respect of administrative expenditure as computed by the assessing officer under para 6 of the assessment order as investment cannot be made without incurring administrative and other expenses. Accordingly, this appeal of the assessee is partly allowed.
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