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TMI Blog2022 (1) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... lidated order. 2. Only ground in Asstt.Year 2005-06 and first ground in the Asstt.Year 2013-14 are identical except variation in quantum of amount. In other words, the grievance of the Revenue in both the above assessment years is that the ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 3,68,66,552/- for the Asstt.Year 2005-06 and Rs. 7,03,93,962/- for the Asstt.Year 2013-14 made on account of estimation of profit @8% of the work-in-progress. 3. We would take a brief fact of the case for adjudication of this common ground. Assessee is a developer and engaged in development of various schemes on the land owned and belonging to different entities. It has filed return of income declaring total income at Rs. 11,28,440/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the Department to demonstrate that the alleged receipts were meant for the assessee, and income qua this receipt accrued to the assessee. The ld.CIT(A) has substantially reproduced the above orders of the Tribunal while deciding the issue in favour of the assessee in the impugned order. Dissatisfied with order of the ld.CIT(A) in deleting the impugned additions, Revenue is before the Tribunal. 4. The ld.DR relied upon order of the AO, while the ld.counsel for the assessee strongly supported the orders of the ld.CIT(A). 5. We have heard both the sides, and gone through orders of the Revenue authorities. We have also gone through orders of the ITAT in the assessee's own case cited (supra) for the assessment years 2008-09 and 1997-98. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belief that such investment was made out of borrowed funds. The ld.AO accordingly issued show cause notice as to why disallowance of interest expenses under the provisions of section 14A read with Rule 8D of the Act should be made. In response thereof, the assessee explained that the investment was made out of interest free funds available with the assessee, and therefore, no expenditure was incurred by the assessee towards investment for making such investment which yielded exempt income. Assessee had filed details of investment along with balance sheet showing capital and general reserves & surplus available with the assessee during the year period under consideration. However, the ld.AO did not accept the explanation of the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, the assessee had sufficient interest free funds in excess of investment made for earning tax free income, and therefore, invocation of provisions section 14A read with rule 8D is not justified. 11. We have heard rivals submissions and gone through the record carefully. We find that action of the ld.AO in making disallowance under section 14A read with Rule 8D was not justified in view of the fact that the assessee has demonstrated that it has sufficient funds for making investment which yielded exempt income. As per the figures demonstrated by the assessee, assessee's interest free funds far exceeded investment made for earning exempt, against which, there is no material with the Department to establish that borrowed funds were utilize ..... X X X X Extracts X X X X X X X X Extracts X X X X
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