TMI Blog2018 (1) TMI 1626X X X X Extracts X X X X X X X X Extracts X X X X ..... we noticed that the assessee had made huge investment as per profit and loss account and necessarily expenses must have been incurred towards undertaking these transaction / activities. Thus , in order to maintain consistency and judicial discipline , end of justice will be met in the instant case if further disallowance of expenditure u/s 14A is kept at an additional amount of ₹ 5,00,000/- towards administrative/misc. expenses to be added to the income of the assessee . This is in view of the non recording of proper satisfaction by the authorities below as to the incorrectness of the claim of the assessee s claim and also this disallowance u/s 14A so upheld by us is in consonance with the decision of Hon ble Supreme Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction activity and is also running a Hotel at MadhMarve Road, Malad in the name and style The Resort . Besides, this the company has invested in shares and it is also partner in various partnership firms. The assessee filed its return of income electronically on 30/9/2011, declaring total loss of ₹ 5,45,67,181/-. Subsequently the assessee filed Revised Return of Income on 28/03/2013 declaring total loss of ₹ 10,05,86,547/-. The case of the assessee was selected for scrutiny and after serving statutory notices and seeking reply of the assessee, order dated 31/03/2015 passed u/s. 143(3) of the Act, by making disallowance u/s 14A of the Act read with Rule 8D amounting to ₹ 14,00,73,911/-. Aggrieved by the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng as under:- We find that The assessee had share capital of ₹ 60,48,00,000/- and reserves surplus stood at ₹ 1,74,67,67,552/-, whereas the investment was at ₹ 2,06,66,62,442/-, that out of the said investment the assessee had made investment in properties also that the fresh investment in the shares was not very huge, that it had mode strategic investment, that there was no evidence to prove that borrowed funds were utilised for making investment in shares. In our opinion, the settled position of law stipulate that if the assessee has sufficient own funds then it should be presumed that investment was not made from borrowed funds. Considering the availability of funds we are of The opinion that the AO was not justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the assessee, therefore, the AO was of the view that the provisions of section 14A r.w.r 8D of the I.T. Act 1961 were attracted in assessee s case, therefore additions were made. Ld. CIT (A) while appreciating the orders passed by Hon ble ITAT in assessee s own case for the AY 2008-09, had deleted the additions by holding that the assessee had interest free funds more than the investment in shares. Therefore, while relying upon the judgment of jurisdictional High Court, it was held by Ld. CIT(A) that in such circumstances, it can be safely be presumed that investment in shares have been made out of the interest free surplus funds and hence deleted the disallowance u/s 14A on the premise that the assessee had sufficient interest free f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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