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2018 (5) TMI 1021 - AT - Income TaxEntitlement to deduction u/s 43B - Held that:- Ground raised by revenue stands squarely covered by various orders of this Tribunal in assessee’s own case for A.Y. 2004-05, 2005-06, 2006-07 and 2008-09 wherein it has been held that assessee was entitled to deduction u/s 43B of the Income Tax Act, 1961 (the Act) irrespective of payments. Payments have been audited by the Tax Auditors and the assessee has filed the details of payments, hence the assessee is entitled for deduction u/s. 43B of the Act. - Decided in favour of assessee. Addition u/s 14A - non-utilisation of interest bearing funds for the purpose of investments that could yield dividend income - Held that:- Revenue has not been able to establish by way of documentary evidences that the interest bearing funds were utilised for the purposes of investments. The Certificate issued by the auditors which was verified by Ld.CIT(A) has not been found fault with by Revenue. Even though assessee has kept all the funds in one common pool, the presumption that the investment has been made from interest bearing funds cannot be appreciated, since for the year under consideration assessee has substantially demonstrated before Ld.CIT(A) regarding sufficient funds being available for investment purposes other than the interest bearing funds which has not been refuted by Ld.CIT,D.R. Ld.CIT(A) has observed that the funds are to be strictly utilised by assessee as per guidelines issued by RBI - No infirmity in Ld.CIT(A) deleting disallowance computed by Ld.AO under Rule 8D (iii). - Decided in favour of assessee.
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