2017 (12) TMI 1602

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....irming disallowance of Rs. 61,14,053/-u/s 14A. 2. Disallowance of premium paid on Insurance Premium paid of Rs. 1,32,832/- The Ld. CIT (A) eared in Law and on Facts confirming disallowance of Rs. 1,32,832/- towards premium paid on the Insurance policy. 3. The appellant further craves leave to add, alter or amend his Grounds of Appeal during the course of appeal. 3. Rival contentions have been heard and record perused. 4. Facts in brief are that the assessee is engaged in the business of Investment Banking, Equity / Debt Syndication, Issue Management and Corporate Advisory. In the return of income, the assessee had sue-moto disallowed sum of Rs. 38,037/- u/s 14A r/w Rule 8D. While framing assessment u/s.143(3), AO disallowed interes....

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....e own capital and reserve was more than the investment, in terms of decision of the Bombay High Court in case of HDFC Bank, no disallowance on account of interest is warranted. We also found that the decision of the Tribunal relied on by CIT(A) has been reversed by the Hon'ble Bombay High Court. 10. No interest disallowance can be made u/s.14A of the Act since own funds are sufficient to cover the value of investments, in terms of the following judicial pronouncements:- 1. CIT vs. Reliance Utilities Ltd., [313 ITR 340 (Bom) 2. CIT VS. HDFC Bank Ltd [366 ITR 505 (Bom) 3. HDFC Bank vs. Dy. CIT [383 ITR 529 (Bom) 11. In view of the above, we direct the AO to delete the disallowance on account of interest made u....