TMI Blog2022 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... 757 - SUPREME COURT] wherein it has been held that if the assessee is possessed of sufficient interest free funds to meet the investments, then, under the circumstances presumption will be that the interest free advances/investments have been made by the assessee out of owned funds/interest free funds. In view of above discussion, no disallowance is attracted on account of interest expenditure u/s 14A of the Act read with Rule 8D(2)(ii) of the I. T. Rules. Disallowance of administrative expenditure u/s14A of the Act read with Rule 8D(2)(iii) the issue is squarely covered by the decisions of the Hon ble Delhi High Court in the case of Joint Investments Private Ltd[ 2015 (3) TMI 155 - DELHI HIGH COURT] and further in the case of ACB In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance u/s 14A of the Act r.w. Rule 8D(2)(ii) of the I.T. Rules is concerned, the ld. Counsel for the assessee has submitted that the assessee had sufficient owned funds to meet the investments. He, in this respect, has relied upon the balance sheet of the assessee for the year under consideration to submit that the assessee had share capital of ₹ 5.86 crores and reserve and surplus of ₹ 77.91 crores as on 31.03.2013 and these were share capital of ₹ 5.86 crores and reserve and surplus of ₹ 81.93 crores as on 31.03.2014. He has further invited our attention to the details of investments to submit that non-current investments as on 31.03.2014 were ₹ 47.73 crores and further current investments were ₹ 1.95 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance of interest is not warranted under Section 14A of Income Tax Act for investments made in tax free bonds/ securities which yield tax free dividend and interest to Assessee Banks in those situations where, interest free/own funds available with the Assessee, exceeded the investments. Further reliance in this case can also been placed on the decision of the Hon ble Supreme Court in the case of Hero Cycle (P) Ltd. Vs. CIT 379 ITR 347 (SC) and also the decision of the Hon ble Supreme Court in the case of CIT (LTU) vs. Reliance Industries Ltd. (2019) 410 ITR 466 (SC) wherein it has been held that if the assessee is possessed of sufficient interest free funds to meet the investments, then, under the circumstances presumption will be th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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