TMI Blog2016 (1) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee that it had sufficient owned funds to make investment, we see, that for the proposition that in case of mixed funds, the assessee having sufficient owned funds to make investment, it can be presumed that the investments are made out of owned funds, we are guided by the judgments in the case of Bright. Enterprises Pvt. Ltd. Vs. CIT [2015 (11) TMI 342 - PUNJAB & HARYANA HIGH COURT ]. Though the said judgments were delivered in the context of section 36(1)(iii) of the Act, but the proposition laid down is that in the event of mixed funds available with the assessee, it can safely be presumed that the investments are made out of owned funds. However, since we are sending back the case to the file of the Assessing Officer on the first issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investments have been made. Therefore, there is no income earned or received during the year, which has not become part of the total income. The learned CIT (Appeals), rejecting the contention of the assessee held that since it is clear that the assessee had incurred expenditure in the form of interest which is not directly attributable to any particular income or receipt. In such a situation, it is evitable that the interest bearing funds have been used by the assessee to make such investments. In this way, the learned CIT (Appeals) dismissed the appeal of the assessee. 4. Aggrieved by the order of the learned CIT (Appeals), the assessee has come in appeal before us. The learned counsel for the assessee made submission two fold. Firstly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome, no disallowance should be made. The Hon'ble Delhi High Court in the case of CIT Vs. Holcim India Pvt. Ltd. (2014) ITA No.486 of 2014 and ITA No.299 of 2014 dated 5.9.2014 has also held the same. Though the judgments are for assessment year prior to the assessment year 2008-09, i.e. the year in which Rule 8D of the Income Tax Rules was brought in the Income Tax Rules. But the proposition laid down by the Hon'ble High Court is with regard to section 14A of the Income Tax Act, which is to be applied even after the insertion of Rule 8D of the income Tax Rules. It is a trite law that the provisions of Act prevail over the Rules. Once the taxability of an amount is decided as per the provisions of the Act, only then a Rule can be i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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