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2018 (12) TMI 1145 - HC - Income TaxDisallowance u/s.14A r.w.r. 8D - Held that:- The exposition of law made by the Supreme Court in case of S. A. Builders [2006 (12) TMI 82 - SUPREME COURT] and observation made therein have been applied by this court on various occasions, particularly in connection with the disallowance to be made under Section 14A of the Act. It has been held that if the assessee can demonstrate availability of surplus interest free funds for making investment generating tax free income, disallowance under Section 14A of the Act would not be justified. As decided in assessee's own case Section 14A read with Rule 8D could be applied only after the Assessing Officer is not satisfied with the claim of the assessee regarding the expenditure [2017 (9) TMI 531 - GUJARAT HIGH COURT] The judgment in case of Maxopp Investment Ltd.[2018 (3) TMI 805 - SUPREME COURT OF INDIA] does not lay down a proposition that the moment it is demonstrated that the assessee had availed of mixed funds i.e. interest free as well as interest bearing funds and utilized them for making investments into securities earning tax free income and the rest applicability of the Section 14A read with Rule 8D would be automatic. - Decided against revenue
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