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2020 (12) TMI 558 - AT - Income TaxAddition of interest on advance given for purchase of immovable property u/s 36(1)(iii) - HELD THAT:- Similar issue of issuance has been raised in earlier years also i.e. from 2011-12 to 2012-13. In all these years, such disallowances were deleted and claim of the assessee was allowed by the Tribunal. We have gone through the orders of the CIT(A) and the Tribunal on this issue. We do not find any dissimilarity of facts of this year with that of earlier years. As noted in the assessment order itself that the assessee has sufficient interest free and own funds so as to make investment/advances. In number of authoritative judgments it is held that when there are substantial interest free and own funds, presumption would be that the investment and/or advances were made out of such funds. We do not find any infirmity in the finding of the ld. CIT(A) on this issue. Accordingly following the orders of the Tribunal in the case of assessee for the earlier years, we uphold action of the ld. CIT(A) and dismiss this ground of appeal of the Revenue. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- Hon'ble jurisdictional high Court in the case of Nirma Credit & Capital P. Ltd.[2017 (9) TMI 485 - GUJARAT HIGH COURT] has held that for application of Rule 8D(2), disallowance of expenditure to be considered should be net of interest i.e. interest paid minus interest received. In the present case, the assessee has earned higher interest income than the interest paid on the borrowed funds. We find that fact the present case is similar to the issue in the case of Nirma Credit & Capital and therefore, in our view this case law supports the case of the assessee. Moreover, ITAT in the assessee's own case for earlier years also allowed similar claim of the assessee. The facts in the present year is also similar to the facts of earlier years, and therefore, following the consistency with the earlier orders, we allow the claim of the assessee, and dismiss the ground of appeal of the Revenue.
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