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2020 (9) TMI 60 - AT - Income TaxDisallowance u/s 14A - As per CIT-A investments that has yielded the exempted income alone is to be considered for the purpose of calculating the disallowance under Rule 8D(iii) - contention of the assessee even before authorities below that the interest bearing borrowings were utilized for business purposes and not for making investments - HELD THAT:- The authorities below have not given any finding to contradict/rebut this plea of the assessee. In any case, the assessee’s own interest free funds which were deployed by the assessee in business ( share capital-losses) are much higher than average investment held by assessee during the year under consideration. Thus, additions as were made by AO which was later sustained by learned CIT(A) by disallowing interest expenditure invoking provisions of Section 14A read with Rule 8D(2)(ii) of the 1962 Rules is not sustainable in the eyes of law which we order deletion. Our decision is supported by decision of Reliance Utilities and Power Limited . [2009 (1) TMI 4 - BOMBAY HIGH COURT], M/S RELIANCE INDUSTRIES LTD [2019 (1) TMI 757 - SUPREME COURT] HDFC BANK LTD. [2016 (3) TMI 755 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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