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2020 (2) TMI 91 - AT - Income TaxDisallowance u/s 14A - HELD THAT:- During the year under consideration, there is no increase in the investment in mutual funds but there is a substantial decrease in the investment in mutual funds. The A.O. in the remand report has not given any factual finding and has stated that the documentary evidence produced by the assessee was considered by the A.O. during the assessment proceedings and consequently he does not find anything contrary to the order of the A.O Disallowance made on account of administrative expenses - A.O. in the remand report has not given any finding on the facts and the evidence produced by the assessee but simply stated that “I do not find anything contrary to the order of the A.O.” Such remand report would not serve any purpose and particularly when the matter was specifically remanded to the record of the ld. CIT(A) for giving the A.O. an opportunity to examine the evidence filed by the assessee. Hence, in view of the above facts and circumstances, we do not find any error in the impugned order of the ld. CIT(A) to the extent of sufficiency of the assessee’s own funds for making investment in the mutual funds. Disallowance sustained by the ld. CIT(A) towards the administrative expenses as per Rule 8D(2)(iii) of the Rules - CIT(A) has restricted the said disallowance to the amount of dividend income - identical issue has been considered by this Tribunal in assessee’s own case [2019 (4) TMI 192 - ITAT JAIPUR] - CIT(A) has also followed the order of the Tribunal while restricting the disallowance U/s 14A read with Rule 8D(2)(iii) of the Rules and hence we do not find any error or illegality in the impugned order of the ld. CIT(A) qua this issue. Disallowance made u/s 36(1)(iii) of the Act on account of interest expenditure in respect of OD account - HELD THAT:- CIT(A) has considered the fund flow position of the assessee and thereby come to the conclusion that the total interest expenses on OD account was ₹ 49,197/-. In view of the above facts and circumstances of the case when the A.O. has not given any finding in the remand report, we do not find any error or illegality in the impugned order of the ld. CIT(A) qua this issue
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