TMI Blog2016 (4) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 made strategic invesment,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 the if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f CIT(A) the assessee has filed the present appeal. Assessee-company,engaged in the business of real estate development and hotelier,filed its return of income declaring total income of ₹ 38,25,67,357/-.The AO completed the assessment on 30.12.2012,u/s. 143(3) of the Act,detrmining the income of the assessee at ₹ 47.72 crores. 2. Effective ground of appeal is disallowance made u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up companies,that it had used the borrowed funds for the purpose of business.Referring to the provisons of section 14 r.w.Rule 8D,the AO made a disallowance of ₹ 9.45 Cores(₹ 8.77 Crores under rule 8D(ii)+ ₹ 68.69 lakhs under Rule 8D(iii)of the Rules). 3.During the appellate proceedings before the FAA,the assessee argued that investment in shares had been made out of non inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l available fund,that increase in investments was because of investment made in immovable properties.He relied upon the decisions/judgment of the Tribunal and Hon ble High Court delivered in assessee s own case(ITA/4431-4050/Mum/2000, ITA.s. 4759-60/Mum/2001,Income-tax appeal No.1260 of 2009).Departmental Representative (DR) supported the order of the FAA. 5. We find that the assessee had share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 8D of the Rules cannot be made in a mechanical manner.Thirdly,the disallowance cannot be more than the expenditure claimed by an assessee.We find that in the case of the assessee the Tribunal and the Hon ble High Court had decided the identical issue against the AO,while deciding the appeal filed by the group concerns and the assessee itself . Respectfully, following the orders mentioned in par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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