TMI Blog2017 (11) TMI 1942X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of HDFC Bank Ltd. [ 2016 (3) TMI 755 - BOMBAY HIGH COURT] . Accordingly, we set aside the order passed by the learned CIT(A) on this issue in all five years and direct the Assessing Officer to delete the disallowance of interest expenditure made u/s. 14A of the Act. For assessment year 2011-12, the AO is directed to compute the disallowance under Rule 8D(2)(iii) by adopting correct figures. Deemed dividend addition u/s. 2(22)(e) - AO noticed that the partners of the assessee-concern are also directors in a closely held company and the assessee company has borrowed funds from the above said closely held company - HELD THAT:-Hon'ble Supreme Court has since decided identical issue in the case of CIT Vs. Madhur Housing and Developm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cross objections filed by the assessee relates to disallowance made u/s. 14A of the Act. The Assessing Officer noticed that the assessee has received exempt dividend and capital gains, but did not make any disallowance u/s. 14A of the Act. Hence the Assessing Officer computed disallowance u/s. 14A of the Act and accordingly disallowed the interest and administrative expenses by applying provisions of Rule 8D of the I.T. Rules in all the years. The learned CIT(A) also confirmed the same and hence the assessee has filed these appeals before us. 3. Learned AR submitted that the assessee has made investments in mutual funds. It is having sufficient own funds which is in far excess value of investments made in mutual funds. Accordingly, lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012-13 0.95 1.47 0.10 978.06 21.26 2013-14 0.05 2.26 0.10 797.79 18.98 6. Perusal of the above said table would show that the own funds available with the assessee is in excess value of mutual funds held by the assessee. Other investments made by the assessee consisted of fixed deposits made with the Bank and investment made in shares of Cooperative Bank, income from both of which is not exempt. Since own funds available with the assessee is in far excess of value of investment made in mutual funds, there is merit in the contentions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the decision rendered by Hon'ble Bombay High Court in the case of CIT Vs. Impact Containers Pvt. Ltd. others (Income Tax Appeal No. 114 of 2012). The learned CIT(A) was convinced with contentions of the assessee and accordingly deleted the additions made u/s. 2(22)(e) of the Act. The Revenue is aggrieved by the decision of the learned CIT(A). 8. Learned Departmental Representative submitted that the decision rendered by Hon'ble Bombay High Court has since been challenged by the Revenue by filing SLP before Hon'ble Supreme Court. 9. On the contrary, learned AR submitted that Hon'ble Supreme Court has since decided identical issue in the case of CIT Vs. Madhur Housing and Development Company (Civil Appeal No. 3196 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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