9911796707
TMI Blog2023 (4) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dated 18.05.2022 passed by the CIT(A) in National Faceless Appeal Centre (NFAC), Delhi, in relation to assessment year 2018-19. 2. Four grounds have been raised in the Memorandum of appeal. The last ground about the addition of Rs.68,13,866 on account of difference between the income appearing in Form No.26AS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,300 towards 1% of average investments and (ii) Rs.2,03,68,161 consisting of interest of Rs.1,95,62,471; STT on shares of Rs.2,02,312; brokerage on shares of Rs.5,27,206; and Demat charges of Rs.76,172. The ld. CIT(A) did not provide any succor to the assessee, who has brought the matter before the Tribunal. 5. We have heard the rival contentions and perused the relevant material on record. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hly averages of opening and closing balances of the value of the investment" and not the average of opening and closing balances on annual basis. We, therefore, set aside the impugned order on this score and remit the matter to the AO for computing 1% disallowance by considering the annual average of the monthly averages of opening and closing balances of the value of investments. 6. The next com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the above referred interest on HDFC loan is in respect of loan taken for acquisition of properties, which emerges from page 56 of paper book. Referring to Notes to financial statement for the year having reference to `HDFC property loan", the ld. AR brought to our notice that the assessee took loan from HDFC only for the purpose of purchase of certain properties which were totally unconnected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upreme Court in Godrej & Boyce Manufacturing Co. Ltd. vs. DCIT (2017) 394 ITR 449 (SC) has held that no disallowance of interest can be made as per rule 8D when interest bearing funds are more than the investments made by the assessee in securities yielding exempt income. In view of the above position, it is clear that the disallowance of interest of Rs.1,95,62,471 made by the AO as sustained in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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