TMI Blog2011 (9) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... mbai dated 23.4.2010 for A.Y. 2007-08 on the following grounds:- 1) On the facts and circumstances of the case and in law, learned CIT(A) erred in confirming the disallowance of the expenses of Rs. 40,51,537/- u/s. 14A r.w. rule 8D of Income Tax Act, made by Assessing Officer. The appellant prays that the addition u/s. 14A may please be deleted. 2) Without prejudice to ground No. 1, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mum)(SB). Jurisdictional High Court in the case of Godrej and Boyce Manufacturing Co. Ltd., 328 ITR 81 (Bom) has reversed the decision of the Tribunal in the case of Daga Capital Management Ltd. and held that Rule 8D can be applied only prospectively. To this extent the order of the learned CIT(A) has to be reversed 5. Second argument of learned counsel for the assessee is that there are suffic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been made, out of interest free funds generated or available with the company. If the interest free funds were sufficient to meet the investment then no disallowance can be made u/s. 14A. The Tribunal in these orders, were following the judgement of Hon'ble Jurisdictional High Court in the case of CIT Vs. Reliance Utilities and Powers Ltd., 313 ITR 340 (Bom). The case on hand, we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ictional High Court that the presumption should be that interest free funds, would have been utilized for the purpose of investment. 7. We further observed from the assessment order, that dividend income earned during the year and claimed as exempt u/s. 10(34) of the Act is only Rs. 17,27,076/- and whereas disallowance made by the Assessing Officer by applying Rule 8D is Rs. 37,41,735/- 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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