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2019 (6) TMI 1291 - AT - Income TaxEligibility for deduction u/s 80P(2)(e) - CIT-A allowed claim - HELD THAT:- CIT(A) allowed the assessee’s claim u/s 80P(2)(e) noting that the Hon'ble Jurisdictional High Court in the case of assessee itself [2011 (3) TMI 615 - PUNJAB AND HARYANA HIGH COURT] had held that the deduction u/s 80P(2)(d) of the Act was allowable on rental income earned from outsiders. It was on appreciating this legal proposition that the I.T.A.T. in the first round has restored the matter back to the CIT(A) to adjudicate the issue of allowance of claim u/s 80P(2)(e) after verifying the evidences filed by the assessee. CIT(A) has gone through all the evidences filed by the assessee and found the claim of the assessee to be in accordance with law. DR has been unable to controvert this factual finding of the CIT(A). In view of the same, we find no reason to interfere in the order of the CIT(A). Disallowance of interest expenditure u/s 14A calculated as per Rule 8D(2)(ii) - HELD THAT:- where sufficient own interest free funds are available, no disallowance of interest is warranted. The CIT(A) has given a factual finding that sufficient interest free funds were available with the assessee. DR was unable to distinguish the decision of the I.T.A.T. relied upon by the Ld.CIT(A) and was also unable to controvert the factual finding of the CIT(A) vis-à-vis the deletion of interest expenses as per Rule 8D(2)(ii) of the Rules. As far the directions of the CIT(A) to calculate the disallowance of administrative expenses as per Rule 8D(2)(iii) of the Rules by taking into consideration only those investments which had earned interest and dividend income, we find that the CIT(A) had relied upon the decision of the I.T.A.T. in the case of the assessee itself for assessment year 2013-14 on identical issue. DR was unable to distinguish the same. In view of the same, we do not find any reason to interfere in the order of the CIT(A) in this regard also.
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