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2018 (9) TMI 1405 - AT - Income TaxAddition u/s 14A r.w.r. 8D - availability of own funds - Held that:- As examined the availability of interest free funds with the assessee and has found that as against investment made of ₹ 43.97 crore the assessee had interest free surplus funds of ₹ 398.79 crore. Being satisfied with the factual position that assessee had enough interest free surplus funds to take care of the investment, he has deleted the disallowance of interest expenditure made under Rule 8D(2)(ii) of the Act. As AR indicating the availability of funds with the assessee, we find that right from A.Y. 1992-93 to A.Y. 2008-09, each year assessee had sufficient interest free funds available with it, which is more than the investments made. Therefore, applying the ratio laid down by the Hon’ble Jurisdictional High Court in the case of CIT vs. Reliance Utilities Ltd (2009 (1) TMI 4 - BOMBAY HIGH COURT) and CIT vs. HDFC Bank Ltd.(2014 (8) TMI 119 - BOMBAY HIGH COURT), no disallowance of expenditure can be made under Rule 8D(2)(ii). That being so, we do not find any infirmity in the decision of the learned CIT(A) in deleting the disallowance made under Rule 8D(2)(ii) read with section 14A of the Act. This ground is dismissed. Applicability of section 14A r.w.r. 8D while computing book profit u/s. 115JB - Held that:- After analyzing the provisions contained u/s. 115JB we agree with the learned CIT(A) that computation of book profit u/s. 115JB cannot be made by taking recourse to the provisions of section 14A read with Rule 8D, except, as stipulated under clause (f) of Explanation 1 of section 115JB of the Act, in so far as it relates to expenditure attributable to exempt income. This view has also been expressed by the ITAT, Delhi, Special Bench in case of ACIT vs. Vireet Investment Private Ltd. (2017 (6) TMI 1124 - ITAT DELHI). Uphold the decision of the learned CIT(A) by dismissing the ground raised.
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