TMI Blog2013 (8) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the investments were from interest free funds available - assessee has suo moto disallowed sum u/s. 14A - Assessing Officer had, without giving a finding as to how much administrative expenditure have been incurred to earn the exempt income, had made disallowance - Following decision of CIT v. Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - HIGH COURT BOMBAY] - Decided against Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er: "Whether the Appellate Tribunal has substantially erred in holding that disallowance u/s. 14A required "finding of incurring of expenditure" for disallowance of part of administrative expenditure u/s. 14A, in the face of facts that infrastructure and human resources of Bank were employed for investing activities which earned exempt income, particularly, when the assessee itself disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Rs. 5.53 crore made by the Assessee, the AO disallowed Rs. 27.23 crore u/s. 14A. As on 31st March, 2003, the interest free funds available with the assessee was to the tune of Rs. 3404 crore (comprising of share capital of Rs. 230 crore Reserves of Rs. 689 crores and interest free demand deposits and Rs. 2485 crores) as against which the tax free investments were to the tune of Rs. 589 crore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of Bombay High Court, we are of the view that in the facts of the present case, no further disallowance over and above than what has been disallowed by the Assessee is called for. As far as disallowance of other administrative expenses is concerned, the undisputed fact is that the disallowance has been made by the AO without giving a finding as to how much administrative expenditure h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal has committed no error. Basically the entire disallowance has been made on the basis of facts emerging on record. The Tribunal also relied on the decision of the Bombay High Court in case of CIT v. Reliance Utilities Power Ltd. reported in 313 ITR 340. Additionally, we find that the Assessing Officer had, without giving a finding as to how much administrative expenditure have been incur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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