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2021 (6) TMI 286 - AT - Income TaxAddition u/s 14A r.w.r 8D(2)(ii) - sufficiency of own funds - CIT-A deleted the addition - HELD THAT:- We find that the CIT(A) has relied on the facts and the financial statements and the submissions of the assessee, Whereas the assessee has made investments out of the surplus funds and no borrowed funds are utilized for investments and such investments have been made in subsidiaries to have control on the management of the subsidiaries and not to earn any income. Further, the borrowed funds were utilized only for the purpose of normal course of business. We find that the CIT(A) considered the facts, provisions of law, judicial decisions and financial statements and also the investments are made out of the interest free funds On perusal of the CIT(A)order, we find that the assessee could able to substantiate before the lower authorities on the surplus funds including reserves and surplus and in this assessment year, the assessee has reserves& share capital to the extent of ₹ 1,231.5 crores, whereas the investments are much less than the available surplus balances - See HDFC BANK LTD. VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX-2 (3) , MUMBAI & OTHERS [2016 (3) TMI 755 - BOMBAY HIGH COURT] & THE COMMISSIONER OF INCOME TAX VERSUS RELIANCE UTILITIES & POWER LTD. [2009 (1) TMI 4 - BOMBAY HIGH COURT] We find that the assessee has sufficient funds for making investments and the A.O has not doubted the availability of the funds but made disallowance invoking the provisions of Sec.14A r.w.r 8D(2)(ii).The Ld. DR could not substantiate or controvert the findings of the CIT(A) with any new cogent material or information but relied only on the order of the A.O. Accordingly, we do not find any merits in the submissions of the revenue and the CIT(A) considered the facts and relied on the judicial decisions and has passed a reasoned order - Appeals filed by the revenue are dismissed.
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