2016 (8) TMI 1089

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....peal under Section 260A of the Income Tax Act, 1961 (the Act) challenges the order dated 10th May, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 10th May, 2014 is in respect of Assessment Year 200708. 2. Mr. Kotangle, learned Counsel for the Revenue urges only following two questions for our consideration : "(i) Whether on the facts and in the circums....

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....est free funds available to the extent of Rs. 41.84 crores. Therefore, in view of the decision of this Court in Commissioner of Income Tax Vs. Reliance Utility and Power Ltd. 313 ITR 340 wherein it is held that if both interest free funds and interest bearing funds are available, then a presumption arises that investments / advances have been made out of interest free funds, the disallowance of in....

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....ce Manufacturing Ltd. Vs. Dy. Commissioner of Income Tax, 328 ITR 81 the Rule 8D cannot be invoked for the subject assessment year i.e. A.Y. 200708. In the above view following a reasonable method, the Commissioner of Income Tax (Appeals) disallowed expenditure under Section 14A of the Act to the extent of 5% of the dividend earned. (c) The further appeal by the Revenue to the Tribunal was dismis....