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2022 (6) TMI 237 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - AO held that the assessee has not considered any proportionate interest expenses and financial charges, administrative expenses, common facility, utilization of assets of business for the investment activities - HELD THAT:- When mixed funds were used for investment yielding exempt income and if own reserve & surplus fund is more than such investment then presumption would arise that investment was made from own surplus & reserve fund. Thus, Rule 8D(i) and 8D(ii) are not applicable. So far as administrative expenses it is held that no disallowance u/s 14A of the Act in respect of interest and administrative expenses ought to be made where there are sufficient own funds - Since, the reserve & surplus fund are more than the investment made yielding exempt income, hence further disallowance u/s. 14A of the Act i.e. more than that of the appellant was not required. In other words, the AO is directed to restrict disallowance u/s 14A to the extent of disallowance-suo motu made by the appellant. Deduction u/s 80IA(4) - Whether CIT(A) is right in law in allowing deduction at the rate on which the GEB supplied power to its customers ignoring the rate on which GSECL (a power generating company) supplied its power to GEB and not considering rate other than the selling price charged by the assessee?" - HELD THAT:- Respectfully following judgment of jurisdictional High Court in the assessee’s own case [2017 (1) TMI 513 - GUJARAT HIGH COURT] decided the issue in favour of assessee.
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