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2018 (3) TMI 35 - AT - Income TaxDisallowance u/s 14A - Held that:- There is no exempt income credited in the P&L a/c during the year under consideration and therefore, no disallowance u/s 14A of the Act was warranted. It is also seen that the assessee company has shareholders funds as on 31.03.2011 to the tune of ₹ 46.81 crores whereas investment in the shares of subsidiary companies is only 15.07 crores. As such the shareholders funds are substantially in excess of amount invested and the logical inference from the same could only be that the impugned investments have been made out of self generated funds and not interest bearing resources. - Decided in favour of assessee. Disallowance of telephone expenses on personal usage - Held that:- We are in agreement with the contentions of the assessee on the issue as this is the case of a Private Ltd. company wherein the normal personal usage of expenses and the consequent disallowance is legally not permissible. There has not been any logical basis for the AO to hold the view that 30% of the impugned expenses pertain to personal usage. Therefore, disallowance made was rightly directed to be deleted by the Ld. CIT(A), which does not need any interference on our part, therefore, we uphold the well reasoned order passed by the Ld. CIT(A) - Decided against revenue
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