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2022 (11) TMI 229 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - During the course of assessment, the AO was of the view that the income received by the assessee from investments made in AOP is exempted and consequently he applied the Section 14A r.w.rule 8D made disallowance - HELD THAT:- As noted from the record that the assessee was having total interest funds to the tune of Rs.15.13 crores whereas total loan given to subsidiaries were to the tune of Rs.12.92 crores (PB 41) only and if the amount of interest charged is further reduced from this amount then it comes to Rs.6.35 Crores (Rs.12.92 Cr. Minus Rs.6.57 Cr.) which is more than the disallowance confirmed by the ld. CIT(A) amounting to Rs.1,74,18,626/-. The decisions relied upon by the ld. AR of the assessee finds favour in this case. Since, the assessee has not challenged the finding of the ld. AO. The addition made by the ld. AO is confirmed and that of the ld. CIT(A) is reversed. In this view of the matter, we feel that the ld. CIT(A) has exceeded his jurisdiction and the enhancement made by the ld. CIT(A) deserves to be deleted . Thus Ground No. 1 of the assessee is allowed. Interest on income tax refund - HELD THAT:- AO noted that the assessee had received income tax refund amounting to Rs.4,29,218/- but the assessee in the income tax return had shown interest amount of Rs.1,17,100/- only. During the course of assessment proceedings, the assessee could not dispel the doubt raised by AO about the interest amount of Rs.1,17,100/- . Hence, the AO made of Rs.3,12,118/- to the total income of the assessee. In first appeal, the ld. CIT(A) confirmed the action of the AO. During the course of hearing, the ld. AR of the assessee has not advanced any submissions or arguments controverting the findings of the ld. CIT(A) as to the addition sustained by the ld. CIT(A) amounting to Rs.3,12,118/-. In this view of the matter, the ground No. 2 of the assessee is dismissed.
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