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TMI Blog2023 (7) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent : Sh. Nageshwar Rao, Advocate, Sh. Akshay Uppal, Advocate ORDER PER N. K. BILLAIYA, AM: ITA No. 1140/Del/2018 and 1320/Del/2018 are cross appeals by the revenue and the assessee preferred against the order of the CIT(A)-35, New Delhi dated 21.11.2017 pertaining to A.Y. 2014-15. 2. Both these appeals were heard together and are disposed of by this common order for the sake of convenie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion that disallowance u/s.14A r.w.r. 8D is mandatory and invoking the provisions of section 14A the AO computed the disallowance under rule 8D at Rs. 19111668/-. 6. Assessee challenged the addition before the CIT(A) and once again contended that it has earned no exempt income. 7. After considering the facts and the submissions and after drawing support from decision of Hon'ble Delhi High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the CIT(A) erred in applying the percentage of 6% as against 12% applied by the AO in respect of disallowance of interest without giving any guesses. 13. The under lying facts show that during the course of the scrutiny assessment proceedings the AO found that the assessee has total loan outstanding at Rs. 28,21,01,306/-. The AO found that the assessee has raised huge loans from various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng sufficient interest free resources from which it has given interest free advances and since the assessee was having mixed pool of funds the presumption is that the loan / advance has been given out of interest free funds. 16. The DR strongly supported the findings of the AO. 17. We have given a thoughtful consideration to the orders of the authorities below. Summary of own funds, interest fre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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