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2019 (4) TMI 860 - HC - Income TaxAddition u/s 36(1)(iii) - advance share application money given by the assessee to its sister concerns - HELD THAT:- CIT (Appeals) and the Tribunal held that the Assessing Officer had made a wrong reference to a similar treatment given by him for the earlier assessment year 200708. It was found that in the said assessment year 200708 there was no scrutiny assessment. Thus, the entire basis of the order of the Assessing Officer was knocked down. Quite apart, it was found that the assessee had made investment which would yield income in form of dividend and therefore, investment was made for the purpose of earning income. Accordingly, CIT (Appeals) and the Tribunal were of the opinion that the expenditure incurred for earning such income had to be allowed under Section 36(1)(iii) of the Act. We do not find any error in such view. No question of law arises. Disallowance of expenditure u/s 37(1) - HELD THAT:- Tribunal while upholding the decision of CIT (Appeals) held that while making advances to the sister concerns, the assessee was acting in the normal course of business and that the interest expenditure was therefore allowable as per Section 36(1)(iii) of the Act. It was recorded that the Assessing Officer had not brought anything to prove that the expenditure incurred towards interest was not wholly and exclusively for carrying out the business of the assessee. The Tribunal therefore, confirmed the order of the CIT (Appeals). When CIT(Appeals) and the Tribunal have concurrently held that the expenditure was incurred for the purpose of the business of the assessee, we find no reason to interfere. No question of law therefore arises. Disallowance u/s 14(A) r/w Rule 8D - sufficiency of own interest funds - HELD THAT:- We propose to dismiss this ground only on one issue, the finding of the CIT (Appeals) and the Tribunal that the assessee had sufficient interest free fund in excess of interest bearing fund to make investment which would result in exempt income. The Tribunal in this respect relied upon decision of this Court in case of HDFC bank Limited Vs. Deputy Commissioner of Income tax and ors. [2016 (3) TMI 755 - BOMBAY HIGH COURT]. Such being the facts and settled law, no question of law arises.
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