TaxTMI 
TaxTMI 
2013 (10) TMI 1129
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....earing funds are available and the presumption would arise that interest free funds are utilized for investment and no disallowance of interest could be made under section 14A. 1. 3. The CIT(A) erred in drawing incorrect inference, by wrongly interpreting the facts and reasons assigned are wrong & incorrect. 1. 4. The provisions of section 14A are wrongly construed 2. The Appellant craves leave to add any other ground at the time of hearing or before that. " Assessee, an individual, filed his return of income on 22. 10. 2008 declaring total income of Rs. 36, 31, 511/-. Assessing officer(AO)finalised the assessment order u/s. 143(3) of the Income-tax Act, 1961(Act), on30. 11. 2010, determining the total income at Rs. 38. 46 lacs. 2. Eff....
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....he assessee contained transactions relating to both transactions relating to giving and taking of loans on which interest has been received/paid as well as investments in shares, that out of the income earned of by the assessee for the year under consideration i. e. Rs. 37, 44, 788/, income of Rs. 8, 67, 805/, represented income on account of share of profit from firms, that usually, shares from the firm would get credited to the capital account of the partners, that the assessee had not shown that he had received share of profits from the firms in cash/ cheque which was in turn invested in the acquisition of new shares during the year, that as per the profit and loss account filed by him profit of Rs. 18. 86 lakhs was shown as share of pro....
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.... of expenditure of Rs. 61, 003/- worked out by the method prescribed under Rule BD(2)(iii) was not justified. 2. 2. Before us, Authorised Representative(AR) submitted that balance available with the assessee for the year under consideration was Rs. 5. 24 Crores, that he had made investment of Rs. 1. 24 Crores only, that profit for the current year, amounting to Rs. 58. 63 lacs, was also available to the assessee, that there were sufficient fund with him to make investment, that while deciding the issue against the assessee FAA had not considered the relevant facts, that the assessee had two bank accounts, that if the balances available with the HDFC Bank and the Corporation Bank were taken together as on 1. 11. 07 of the accounting year it....