9911796707
TMI Blog2014 (8) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... income for A.Y. 06-07 declaring total income of Rs. 31,38,880/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 24.12.2008 and the total income was assessed at Rs. 45,14,793/-. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) vide order dated 28.04.2011 dismissed the appeal of the Assessee. Aggrieved by the order of CIT(A), Assessee is now in appeal before us and has raised the following concise grounds:- 1. In law and in the facts and circumstances of the appellant's case, the learned CIT(A) has grossly erred in omitting to consider Ground no. 1 of the appellant's appeal before him challenging the very validity of the assessment order impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view that Assessee must have also incurred administrative expenses such as documentation, salaries of employees, handling the investment portfolio, administrative over heads which can be attributed to investment portfolio. He accordingly worked out the disallowance on account of interest by the method prescribed under Rule 8D of I.T. Rules and on account of administrative expenses, he estimated Rs. one lac and accordingly worked out the total disallowance of Rs. 13,75,917/-. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) granted partial relief to the Assessee by holding as under:- 2.3 I have considered the facts of the case, assessment order and appellant's submission. Assessing officer made disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsence of separate bank accounts for investment activities, this provides a better method for computing disallowance. In view of this the disallowance made by the assessing officer is correct and the same is confirmed. In the final result appeal is dismissed. 6. Aggrieved by the order of CIT(A), Assessee is now in appeal before us. 7. Before us, ld. A.R. reiterated the submissions made before A.O and CIT(A). It was further submitted that Assessee had sufficient interest free funds in the form of Share capital and Reserves amounting to Rs. 85.53 crores which have been utilized for investment purposes. He further submitted that Assessee had earned interest income of Rs. 17.14 lacs as against the interest expenditure of Rs. 14.27 lacs and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of A.O and CIT(A). 8. We have heard the rival submissions and perused the material on record. It is an undisputed fact that Assessee had earned tax free income in the form of dividend to the tune of Rs. 5.43 crores which is exempt from tax. It is also a fact that Assessee has earned interest income of Rs. 17.14 lacs as against the interest expenditure of Rs. 14.27 lacs and thus has net interest income of Rs. 2.87 lacs. Before us, Assessee has submitted that the interest free funds available with the Assessee are in excess of investments. This fact has not been controverted by Revenue by bringing any contrary material on record. We further find that Hon'ble Gujarat High Court in the case of CIT vs. Amod Stamping P. Ltd. 2014 45 Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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