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2018 (5) TMI 949 - AT - Income TaxDisallowance u/s 14A - Held that:- We find that the assessee is flooded with own funds which are much higher than the borrowings and the investments made by the assessee. CIT-A had given a categorical finding that the loans borrowed by the assessee were utilized only for business purposes of the assessee and no part of such borrowings were utilized for making investments. This factual finding remain uncontroverted by the revenue before us with reference to the books of accounts. No reason to interfere with the reasoning given for deletion of interest under second limb of Rule 8D(2) of the Rules by the CIT-A. With regard to disallowance of indirect expenses under third limb of Rule 8D(2) of the Rules, the CIT-A had only placed reliance on the co- ordinate bench decision of this tribunal in the case of REI Agro Ltd [2013 (9) TMI 156 - ITAT KOLKATA] wherein it was held that only investments yielding exempt income should be considered for computing disallowance u/s 14A of the Act read with Rule 8D of the Rules. Unexplained Expenditure on the basis of fresh evidences without waiting for the remand report - Held that:- In the instant case, the CIT-A had not merely accepted the version of the assessee. Instead, the ld CITA had thoroughly examined himself the entire reconciliation statements filed by the assessee before the AO which were completely ignored by the AO. We find that the CIT-A had even examined the statements with the supporting evidences that are available in the paper book of the assessee. We are not inclined to accept the grounds of the revenue that the CIT-A had erred in disposing off the appeal without waiting for the remand report. AR drew our attention to the various pages of the paper book that were relied upon by the CIT-A while passing the order on merits. On merits, the submissions made by the assessee before the ld CIT-A, the findings of the CIT-A and the submissions made by the ld AR before us, remain uncontroverted by the revenue before us. Hence we do not find any justifiable reason to interfere with the order of the ld CIT-A in this regard. Accordingly, the Grounds 2 & 3 raised by the revenue are dismissed.
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