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2018 (9) TMI 598 - AT - Income TaxDisallowance u/s 14A - non recording of satisfaction by AO - interest free funds available with the assessee - Held that:- Hon'ble Supreme Court in the case of Maxopp Investment Ltd. (2018 (3) TMI 805 - SUPREME COURT OF INDIA) has categorically held that before applying the provisions of section 14A read with Rule 8D, the Assessing Officer needs to record satisfaction as to how the suo motu disallowance, if any, made by the assessee was not correct. On merits also we find that interest free funds available with the assessee for assessment year 2008-09 were ₹ 15.74 crore whereas in assessment year 2010-11 the figure of interest free funds is ₹ 18.04 crore. As against these interest free funds, the value of investments in shares is only ₹ 88,85,839/-. These figures are verifiable from the copy of balance sheet of the assessee for the assessment years as placed. Hon'ble Delhi High Court in the case of PCIT vs. Sintex Industries Ltd. (2017 (5) TMI 1160 - GUJARAT HIGH COURT) has held that where assessee had surplus funds against which minor investment was made, no question of making any disallowance or expenditure in respect of interest and administrative expenses u/s 14A arose - Decided in favour of assessee
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