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2022 (7) TMI 782 - ITAT DELHIDisallowance u/s 14A r.w.r.8D - disallowance of interest - assessee submitted that, in respect of the disallowance of interest is concerned, the investment in shares and mutual funds were made by the assessee out of its own fund. There is no increase in investment yielding tax free income. There is no increasing investment rather there was a huge decrees - HELD THAT:- We find that, when the assessee had huge reservation and surplus fund which is non interest bearing fund, there cannot be disallowance of interest under Rule 8D(2). The similar issue has come up for consideration by the Tribunal in assessee’s own case and the same have been decided in favour of the assessee for the AY 2012-13 [2020 (2) TMI 1647 - ITAT DELHI] wherein as held that invocation o f sub-Section (2) of Section 14A is conspicuously absent and hence re-computation of the disallowance is not legally valid. And considering the investments in mutual funds and in shares are through PMS, hardly any expense is incurred. As such the estimated disallowance made by assessee suo-moto is reasonable as it meets the expenses on account of STT as well as in direct expenses. Hence, we hereby hold that no additional disallowance is called for by invoking Rule 8D - Decided in favour of assessee.
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