TMI Blog2019 (8) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... ient own funds and the loan funds have been utilized for the business purpose, keeping in view the established legal position as narrated we decline to interfere in the order of the Ld. CIT(A) on the issue of disallowance u/s 36(1)(iii). Disallowance u/s 14A r.w.r. 8D - HELD THAT:- we hold that in the peculiar facts and circumstances of the case, wherein the assessee has received no exempt income, no disallowance can be made u/s 14A, in view of the position of law as considered by the various Courts. Hence, we find no reason to interfere in the order of the Ld. CIT(A) which is rightly based on the judicial pronouncements. - Decided against revenue - ITA NO. 1196 & 1197/Chd/2017 - - - Dated:- 28-5-2019 - Smt. Diva Singh, JM A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y under installation 1,03,84,496 3 Capital Advances 4,41,47,435/- Total 18,06,884,077 The Assessing Officer has disallowed an amount of ₹ 53,70,247/- out of the interest debited under section 36(1)(iii) against the above expenditure. Another similar issue is that the Assessing Officer has disallowed an amount of ₹ 33,75,694/- under section 36(1)(iii) on the investments made by the assessee which are purported to be for non business purposes. The assessee has shown investment of ₹ 301,67,771/- in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010-11 12,992.47 2009-10 10,402.87 2008-09 8,281.74 7.1 In the instant case, further we find that the loans received from the bank in the utilization thereof is as under: Nature of Loan Balance as on 31.03.2011 (in Lacs) Utilization/Remarks Term Loans From various Bank 13,478.16 The said loans were taken in earlier years for the purchase of assets/CWIP and related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he working capital requirements of the company. From the above table, it can be found that the interest bearing funds have been utilized for the business purpose only as per the terms of the loan. Nothing contra has been brought on record to prove the fact that the interest bearing funds shown above have been utilized for non business purpose by the Revenue. We also rely on the legal proportion espoused in the following judgments: Hon'ble Gujarat High Court in the case of CIT vs. RL Kalthia Engineering Automobiles P. Ltd. (2013), Hon'ble ITAT Chandigarh Bench in the case of ACIT v. Upper India Steel in ITA No.920/CHD/2009 order dated 08.02.12, H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following cases, it has been continuously held that no disallowance under section 14A is called for wherein the assessee has not received the dividend, having own resources. Commissioner of Income Tax vs. Lakhani Marketing INCL. 111 DTR 149(P H) CIT v Delite Enterprises ITA No.110/2009, the Bombay High Court (Bom) Punjab Haryana High Court in the case of CIT Vs Kapsons Associates as reported n 381 ITR 204, CIT Vs. Shivam Motors Pvt Ltd ITA No.88/2014, (Order dt.05.05.2014) the Allahabad High Court 230 Taxman 0063 ITAT Chandigarh Bench in the case of M/s Empire Packages (P) Ltd. vs DCIT in ITA No. 1186/CHD/2013 declared on 23.05.2016 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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