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2019 (11) TMI 358 - AT - Income TaxDisallowance u/s 14A read with rule 8D - HELD THAT:- Overdraft account balance before outflow of the fund for investment was ₹ 11.99 crores and after outflow, it was increased to ₹ 14.99 crores and thus investment of ₹ 3 crores, was made out of interest-bearing overdraft account. This finding of the fact has not been rebutted by the assessee before us. When there is a direct evidence that investment has been made out of borrowed fund, there is no requirement to refer to the presumption that investment was made out of interest free funds generated or available with the company. In view of the finding that investment was made out of borrowed funds, the learned CIT(A) computed the disallowance under Rule 8D Hon’ble Delhi High Court in the case of Joint Investment Private Limited [2015 (3) TMI 155 - DELHI HIGH COURT] he restricted the disallowance to the amount of exempted dividend income of ₹ 7,50,000/-. In view of clear finding that investment in the shares was made out of borrowed funds, the request of the assessee to remit the matter back to the Assessing Officer for deciding in view of the assessment for assessment year 2013-14 is rejected. CIT(A) on the issue in dispute is well reasoned and we do not find any error in the same. Accordingly, we uphold the finding of the learned CIT(A) on the issue in dispute. The ground of the appeal of the assessee is accordingly dismissed.
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