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2018 (6) TMI 1112 - AT - Income TaxDisallowance u/s. 36(1)(iii) - addition of interest on the diversion of the fund - Held that:- The owned funds of the assessee exceed the amount of money advanced to its sister concern. Therefore, the presumption can be drawn that the money has been advanced out of its owned fund - As the owned fund of the assessee exceeds the amount of advances given to its sister concern, we hold that the advances have been made out of the owned funds of the assessee, and therefore there is no question of making any disallowance on account of diversion of fund u/s 36(1)(iii) of the Act. Hence, we do not find any reason to interfere in the order of learned CIT(A). Addition under the provision of Section 14A - Held that:- It is an undisputed fact that the assessee has not earned any dividend income / exempt income from the shares held as an investment. Therefore, in our considered view, no disallowance u/s 14A r.w.r. 8D can be made. In this regard, we find support and guidance from the judgment of Hon’ble Gujarat High Court in the case of CIT vs. Corrtech Energy P. Ltd. [2014 (3) TMI 856 - GUJARAT HIGH COURT] - Decided against revenue Addition made on account of capitalization of interest expenses - Held that:- As the owned fund of the assessee exceeds the amount of capital work in progress, we hold that it has been made out of the owned funds of the assessee and therefore there is no question of making any disallowance on account of money invested in the capital work in progress. Hence, we do not find any reason to interfere in the order of learned CIT(A). - Decided against revenue
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