TMI Blog2019 (1) TMI 1535X X X X Extracts X X X X X X X X Extracts X X X X ..... ring funds. In such a case this Court in CIT Vs. HDFC bank Vol. [2014 (8) TMI 119 - BOMBAY HIGH COURT] has in identical circumstances held that the principle laid down in Reliance Utilities and Power Ltd.[2009 (1) TMI 4 - BOMBAY HIGH COURT] would equally apply while computing the disallowance under Section 14A of the Act. - Decided against revenue - Income Tax Appeal No. 1374 of 2016 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Rules, 1961? 3. The respondent-assessee is a nonbanking finance company. In its return of income for the Assessment Year 2008-09 the respondent claimed an income of ₹ 52.40 lakhs as exempt dividend income and made a suo-moto diallowance of ₹ 52,934/being the expenditure incurred for earning exempt income. However, in the assessment proceedings the Assessing Officer held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oportionate interest paid on borrowed funds to the extent of ₹ 7.87 crores. 5. Being aggrieved with the order of the CIT (A) on the above account, the revenue filed an appeal before the Tribunal. The impugned order of the Tribunal on facts found that the investments made in shares which resulted in exempt income was out of its own funds and not out of borrowed funds. The impugned order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances held that the principle laid down in Reliance Utilities and Power Ltd.(supra) would equally apply while computing the disallowance under Section 14A of the Act. Thus, no fault can be found with the impugned order dated 5th August, 2015 of the Tribunal. 7. In the above view, the question as proposed does not give rise to any substantial question of law. Thus, no entertained. 8. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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