TMI Blog2013 (6) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... be presumed that borrowed fund was utilised for the purpose of making the investments in the shares. - Decided in favour of assessee Disallowance on account of administrative expenditure - Held that:- We do not find any error or illegality in the impugned orders of the authorities below to the extent of disallowance on account of administrative expenditure. Accordingly, the disallowance ofRs.2,2,24,238/- made u/s 14A on account of administrative expenditure is upheld. - I.T.A. No.8214/Mum/2011 - - - Dated:- 5-6-2013 - SHRI VIJAY PAL RAO, JM AND SHRI N K BILLAIYA, AM For the Appellant: Shri Sanjay R Parikh For the Respondent: Shri O P Meena O R D E R PER : / VIJAY PAL RAO, JM This appeal by the assessee is dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrol over the affairs of the sister concern and not for earning the dividend income. It was further contended that the interest income is more than the interest expenditure; therefore, no disallowance is called for u/s 14A. 3.2 The Assessing Officer did not accept the contention of the assessee and made the disallowance on account of interest u/s 14A to the tune ofRs.15,40,831/- and further ₹ 2,24,238/- on account of administrative expenditure total amounting to ₹ 17,65,069/-. 3.3 On appeal, the Commissioner of Income Tax(Appeals) has confirmed the disallowance made by the Assessing Officer. 4 Before us, the ld AR of the assessee has submitted that the interest income of the assessee is more than the interest expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions as well as the relevant material on record, we find that the assessee s own funds comprising share capitals reserves and surplus is ₹ 4,48,47,798/-, which is equalant to the cost of investment in the shares. Further, there is no fresh investments during the year under consideration and all these investments were made in the earlier year; therefore, there is no question of utilization of the borrowed funds during the year under consideration. 5.1 It is pertinent to note that when the Assessing Officer had not made any disallowance u/s 14A on account of interest expenditure in the earlier year; therefore, in the absence of fresh investment during the year, no disallowance can be made on account of interest by applying the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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