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2016 (7) TMI 1037 - AT - Income TaxDisallowance u/s 14A - Held that:- As in CIT vs. Holcim India Pvt. [2014 (9) TMI 434 - DELHI HIGH COURT] holds that the impugned section 14A disallowance does not apply in absence of exempt income since the same is to be made in relation to the latter one. We are of the view that the impugned disallowance is not sustainable on this score alone. It further emanates that the assessee has not made any investment for earning its exempt income in the two impugned assessment years. This is followed by the crucial appellate finding that it had sufficient reserves and surpluses in the corresponding assessment year of investments exceeding the latter sums. The hon’ble jurisdictional high court in CIT vs. Torrent Power Ltd. (2014 (6) TMI 185 - GUJARAT HIGH COURT) negates applicability of section 14A disallowance in such an instance. The Revenue fails to point out any exception thereto in the course of hearing. This former issue is accordingly decided in assessee’s favour Interest disallowance u/s. 36(1)(iii) - Held that:- It has come on record that the assessee had its disposal sufficient interest free funds in excess of the impugned advances to its sister concerns. The CIT(A) observed hereinabove that the assessing authority does not make out a case of diversion of business funds towards the impugned loans hands advances. The Revenue fails to rebut these crucial findings in the course of hearing before us. We do not deem it appropriate to venture much in a detailed factual investigation on this count alone. - Decided against revenue
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