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2023 (8) TMI 427 - AT - Income TaxDisallowance of expenses pertaining to earning of exempt income as per section 14A - scope of sufficiency of own funds - HELD THAT:- CIT(A) correctly deleted the disallowance of interest u/s 14A noting the fact that own interest free funds of the assessee by way of share capital and Reserves which was far in excess of investments made and in earlier years identical disallowance was deleted finding sufficiency of own funds for making investment. Disallowance of interest expenses not incurred for business purpose as per section 36(1)(iii) - Also the disallowance of interest u/s 36(1)(iii) on account of capital advances was deleted by the Ld.CIT(A) following the same reasoning of availability of sufficient own funds for making the advances. This finding of fact by the Ld.CIT(A) of availability of sufficient own funds for making investments/advances has not been controverted by the Revenue before us. Also, it is settled law that where sufficient own funds are available, presumption is that own funds have been used for the purpose of making the advances/investments, calling for no disallowance of interest whether u/s 14A or under section 36(1)(iii) of the Act. See Reliance Industries Ltd. [2019 (1) TMI 757 - SUPREME COURT] Assessee appeal allowed.
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