2014 (8) TMI 1007

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....ORDER PER N.K.BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. CIT(A)-39, Mumbai, dated 30/06/2011 pertaining to Assessment Year 2008-09. 2. The sole grievance of the assessee relates to the disallowance of Rs. 88,84,319/- u/s-14A of the Act. 3. Assessee is in the business of financial services and also deals in securities and commodities. While scrut....

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.... with the AO, who was of the opinion that the assessee has to be establish that as on the date of investment interest free funds were available with the assessee and are sufficient to meet its investment. The AO proceeded by computing the disallowance and worked out the disallowance at Rs. 90,04,319/- and after allowing the deduction of Rs. 1,20,000/- a sum of Rs. 88,84,319/- was added to the inco....

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....ocumentary evidences brought before us. The balance sheet of the assessee shows that it has interest free funds amounting to Rs. 14,88,38,332/-, the investment is at Rs. 9,71,56,751/-, which clearly shows that the assessee was having sufficient interest free funds to make the investment. A further perusal of the balance sheet shows that the assessee was having loan funds as on 31/03/2007 at ` 33,2....