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2018 (1) TMI 1626 - AT - Income TaxDisallowance u/s 14A r.w, r. 8D - assessee could not establish one-on-one nexus between the own fund/ non-interest bearing fund with investments either during the assessment proceedings or at the appellate stage - CIT-A deleted the addition - HELD THAT - After evaluating the orders passed by ld. CIT(A) we are in agreement with this proposition that when both borrowed and own funds are available and the own funds and interest free loan exceeds investment the presumption can very well be made that investments have been made from interest free funds and not from borrowed funds From the facts as well as documents placed on record we noticed that the assessee had made huge investment as per profit and loss account and necessarily expenses must have been incurred towards undertaking these transaction / activities. Thus in order to maintain consistency and judicial discipline end of justice will be met in the instant case if further disallowance of expenditure u/s 14A is kept at an additional amount of Rs. 5, 00, 000/- towards administrative/misc. expenses to be added to the income of the assessee . This is in view of the non recording of proper satisfaction by the authorities below as to the incorrectness of the claim of the assessee s claim and also this disallowance u/s 14A so upheld by us is in consonance with the decision of Hon ble Supreme Court in the case of Godrej and Boyce Manufacturing Company Ltd. v. DCIT 2017 (5) TMI 403 - SUPREME COURT . We order accordingly.
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