TMI Blog2018 (11) TMI 1610X X X X Extracts X X X X X X X X Extracts X X X X ..... such funds had taken place, merely because the assessee placed his own funds and also the interest free loans for some other purposes, is not open for the learned Assessing Officer to disallow the interest on the amount taken for business purpose. We, therefore, direct the Assessing Officer to delete this addition. Addition u/s 14A - investments for earning of exempt income - AO alleged that assessee being busy profession would have incurred several expenses - HELD THAT:- According to the assessee the investment was made in mutual funds and the expenses were already directed by the operators and a certificate to that extent was submitted before the learner Assessing Officer. The instructions are that the dividend income will be directly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. DR ORDER PER K. NARASIMHA CHARY, JM Challenging the order dated 30.07.2015 in Appeal No. 180/2011-12, passed by the Learned Commissioner of Income Tax (Appeals)-20, New Delhi (Ld. CIT(A)), assessee filed this appeal. 2. Brief facts of the case are that the assessee is a Senior Advocate by profession and has been deriving income under the head s of income from house property, profession, capital gains and other sources. For the assessment year 2009-10, assessee filed the return of income on 26.09.2009 declaring a total income of ₹ 4,76,80,130/-. Assessment was completed under section 143(3) of the Income-tax Act, 1961 ( the Act ) by making certain additions including the addition of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee, Ld. CIT(A) while deleting other additions sustained these two additions. Ld. CIT(A) recorded in respect of the disallowance of interest on the car loan and held that the assessee could have taken measures for retention, protection, or advancement of its business interest by better utilization of interest free funds available with the assessee during the relevant period, but instead the assessee had chosen to utilize those interested free fund for ungainful purposes. 5. It is pertinent to note that Ld. CIT(A) in his order recorded that the assessee had purchased the car by raising interest-bearing loan of ₹ 15 lakhs; there is no dispute by the Ld. assessing officer that the car was purchased and used for busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Assessing Officer to disallow the interest on the amount taken for business purpose. We, therefore, direct the Assessing Officer to delete this addition. 7. In respect of the addition made by invoking section 14 A of the Act, it was contended before the learned Assessing Officer and also before the 1st appellate authority that the operators of the mutual funds deducted the expenses incurred on the funds, namely, STT etc and Management/ administrative expenses and remit only the net income to the assessee and that dividend income has been directly credited by transfer in the assessees bank account with Citibank as such no expenses were incurred by the assessee during the year under consideration. It was further submitted that a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the learner Assessing Officer. Further, the instructions are that the dividend income will be directly credited to the bank account of the assessee so that no probable expenditure at the end of the assessee for deposit of the dividend in bank could have occurred. Having regard to this set of facts and circumstances involved in this matter, we are of the considered opinion that instead of making a sweeping enumeration of the probable expenses involved in investment process, learned Assessing Officer could have taken legal exercise to verify the correctness or otherwise of the certificate that was issued by the asset management companies or the Citibank in this respect. We, therefore, find that there is no proper record of satisfactio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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