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2018 (2) TMI 730 - AT - Income TaxDisallowance u/s 14A - sufficiency of own funds - Held that:- If there are funds available both interest-free and over draft and/or loans taken, then a presumption would arise that investments would be out of the interest-free fund generated or available with the company, if the interest-free funds were sufficient to meet the investments. In this case this presumption is established. As relying on CIT vs. Reliance Utilities and Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] we direct the AO to delete the disallowance as made u.s 14A - Decided in favour of assessee Slump sale - transfer of Planet M. division in consideration of equity shares and 6% redeemable unsecured debentures - whether an exchange of the said division and not sale as contemplated under the provision of section 50B - Held that:- Planet M Division transferred by the assessee as on a going concern basis where no cost of acquisition is possible to be attributed individual assets in that undertaking and therefore the charging of provisions of section 45 are not attracted. We further hold that the provisions of section 50B are not applicable to this case as it is a case of slump exchange and not a slump sale. Accordingly we set aside the order of CIT(A) and direct the AO not to tax the amount of capital gain - Decided in favour of assessee Disallowing software expenses relating to website portal - nature of expenditure - revenue or capital - Held that:- We find that the Ld. CIT(A) allowed the appeal of the assessee by following the earlier order for A.Y. 2007-08 which has attained finality. We have observed that order of Ld. CIT(A) is correct and does not suffer from any infirmity as it has been passed after considering the facts of the case in the light of the similar issue decided in A.Y. 2007-08 which attained finality. Also on merit the issue has been correctly decided as the expense are of revenue nature and therefore we are inclined to uphold the same.- Decided in favour of assessee
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