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2016 (8) TMI 404 - AT - Income TaxDisallowance of expenses u/s.14A - Held that:- On perusing the copy of the Balance Sheet as at 31/03/2008 it seen that the total interest-free funds as at 31/3/2008 comprising of Share Capital and Reserves and Surplus is ₹ 25,39,21,834/- as against Investment of ₹ 15,84,13,764/-. Further the investments have reduced from ₹ 19,10,66,009/- as at 31/03/2007, meaning thereby that there are no new investments at the year end and the interest-free funds in the form of Share Capital & Reserves & Surplus are much in excess of the investments. We find that the Hon’ble Bombay High Court in the case of HDFC Bank Ltd. vs. Deputy Commissioner of Income-tax and Others reported at [2016 (3) TMI 755 - BOMBAY HIGH COURT ] and after referring to the decision of Bombay High Court in the case of CIT vs. Relince Utilities & Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT ) has held that where interest-free funds are available with the assessee which are more that the investments made in the tax free securities, then a presumption arises that the investments were made from its interest-free funds. Before us, Revenue has not placed any contrary binding decision in its support. In view of the aforesaid facts and relying on the decision of Hon’ble Bombay high Court referred to hereinabove, we are of the view that no disallowance of expenditure u/s.14A other than that offered by assessee is called for in the present case. - Decided in favour of assessee
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