TMI Blog2016 (8) TMI 1371X X X X Extracts X X X X X X X X Extracts X X X X ..... and which thus have a end-use restriction and monitoring by the banks towards the manufacturing and export activity of the appellant. Thus giving the availability of interest free funds over and above the secured loans and also the fact that the secured loans had a specific end-use restriction, the investments have been made from its internal accruals in the earlier years and given that no expenditure has been incurred, no disallowance u/s 14A is warranted. - ITA No.797/JP/15 - - - Dated:- 11-8-2016 - SHRI KUL BHARAT, JM SHRI VIKRAM SINGH YADAV, AM For the Assessee: Shri G.G. Mundra (CA) For the Revenue by :Shri D.S. Kothari(CIT) ORDER PER SHRI VIKRAM SINGH YADAV, A.M. This is an appeal filed by the assessee ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt (7,89,006 5,21,464)= ₹ 2,67,542/- was deleted. The assessee is in appeal against the disallowance of ₹ 5,21,464. 2.2 During the course of hearing, the Ld. AR submitted that investment made is only ₹ 3.37 crore whereas the net worth of the assessee is ₹ 115.70 crores. Reliance is placed on CIT vs. Reliance Utilities Power Ltd. (2009) 313 ITR 340 (Bom) wherein it was held that if there be interest free funds available to the assessee sufficient to meet its investment and at the same time loan is raised it can be presumed that investment were made from interest free funds. Also reliance was placed on the following decisions : (i) CIT vs. HDFC Bank Ltd. (2014) 366 ITR 505 (Bom HC) (ii) CIT vs. Gujarat N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see s claim that interest on overdraft facility which was availed for exporting goods for business purposes could not be considered for disallowance under Rule 8D. 2.5 The ld AR further submitted that reason for disallowance u/s 14A given by AO is very general and no cogent reason was given, hence disallowance u/s 14A cannot be made and reliance was placed on the following decisions: (i) CIT vs. REI Agro Ltd. 35 taxmann.com 404 (Kol. Tribunal) (ii) Abhishek Industries Ltd.(2015) 56 taxman.com 391 (P H) (iii) Rajshri Production Pvt. Ltd. (TS-57-ITAT-013)(Mum) (iv) Jindal Photo Ltd. (TS-405-ITAT-2012-Del) (v) Hero Management Service Ltd. (2014) 220 Taxman 107 (Delhi HC) 2.3 The ld CIT DR is heard who has relied on the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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