TMI Blog2017 (7) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... Reliance Utilities & Power Ltd.(2009 (1) TMI 4 - BOMBAY HIGH COURT ). Besides, the assessee had disallowed ₹ 3.43 lakhs on its own under the head administrative expenses and the AO had not given any reason for rejecting the stand taken by the assessee. So, in our opinion, there was no need to make any further disallowance. - Decided in favour of assessee. - I.T.A./2459/Mum/2015 - - - Dated:- 11-7-2017 - S/Sh. Rajendra, Accountant Member and C. N. Prasad, Judicial Member Revenue by: Ms.Arju Garodia Assessee by: Shri Jay Shah , ORDER PER Rajendra A.M. Challenging the order, dated 21/01/2015,of CIT (A)-2,Mumbai,the assessee has filed the present appeal. Assessee-company, engaged in the business of manufacturi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding payment for making investments. Invoking the provisions of rule 8D of the Rules, he made a disallowance of ₹ 18.32 lakhs. Considering the suo motu disallowance of ₹ 3.43 lakhs made by the assessee, the AO added a sum of ₹ 14, 88,400 /-to the total income of the assessee. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority(FAA)and made elaborate submissions. The FAA referred to the order of his predecessor for the AY.2008-09 and confirmed the order of the AO. 4. During the course of hearing before us, the Authorised Representative (AR) contended that the assessee had sufficient own funds to make investments, that it had not utilised any borrowed funds, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of HDFC Bank Ltd (supra)has held that if an assessee possessed sufficient own fund the presumption was that investment was made from own fund and not from borrowed funds. Similar view was taken by the Hon ble Court in the case of Reliance Utilities Power Ltd.(313 ITR340). Besides, the assessee had disallowed ₹ 3.43 lakhs on its own under the head administrative expenses and the AO had not given any reason for rejecting the stand taken by the assessee. So, in our opinion, there was no need to make any further disallowance. Reversing the order of the FAA, we allow the effective ground raised by the assessee. As a result, appeal filed by the assessee stands allowed. Order pronounced in the open court on 11th, July , 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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