TMI Blog2023 (1) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that the assessee company had raised substantial amount of loans for investment in new ventures on which substantial amount of interest was paid . Appellate Authorities below held that the investments were made out of assessee s own funds and no borrowed funds were used to acquire investments. There was no interest expenditure which could be directly or indirectly attributed to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee during the assessment proceedings as per the reply/submissions dated 11th December, 2012 which is mentioned at page 1 of the assessment order itself. ITAT has also recorded that there was no new evidence brought on record by the assessee and in fact, the AO has totally ignored the reply dated 11th December, 2012, filed by the Assessee. Both the appellate authorities below have recorded c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act, 1961 ( the Act ) read with Rule 8D of Income Tax Rules (the Rules ) and in not appreciating the fact that the assessee had earned tax free dividend income of Rs.4,63,01,246/- during the year under consideration that needed to be apportioned. 3. He further states that the ITAT has erred in deleting the disallowance of Rs.19,39,69,553/- under Section 32 of the Act based on the doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Authorities upheld the suo moto disallowance of Rs. 16,05,000/- made by the assessee after taking 20% of employee cost and 5% of the administrative cost. 5. The Supreme Court in South India Bank Ltd. v. Commissioner of Income Tax, [2021] 10 SCC 153 has held that where the assessee has mixed funds (made up partly of interest free funds and partly of interest bearing funds) and the paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were submitted by the assessee during the assessment proceedings as per the reply/submissions dated 11th December, 2012 which is mentioned at page 1 of the assessment order itself. The ITAT has also recorded that there was no new evidence brought on record by the assessee and in fact, the AO has totally ignored the reply dated 11th December, 2012, filed by the Assessee. 7. Consequently, both t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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