2019 (4) TMI 502

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....BENCH: The captioned two appeals filed by the assessee, are directed against order dated 03-07-2018 passed by the ld. Commissioner of Income-tax (Appeals), Jamshedpur, which in turn arise out of an order passed by the Assessing Officer u/s. 143(3) of the Income-Tax Act, 1961 (in short, the Act). 2. Since these two appeals pertain to the same assesse, different assessment years, common and id....

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....ed to acquire the assets from which exempt income was generated. During the course of assessment proceedings, the assessee made an argument that his own funds (Share Capital + Reserves & Surplus) at Rs. 66.38 crores were far exceeding the relevant investment amount of Rs. 17.25 crores. However, the assessing officer rejected the contention of the assessee and made addition under rule 8D (2) (ii) a....

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....restfree funds exceeded the amount of relevant investment, it may be presumed that theinvestment was from own funds. Therefore, ld CIT(A) following the judgment of Bombay High Court in the case of HDFC BANK LTD (supra), deleted the addition. However, in respect of Rule 8D (2) (iii), we note that Coordinate Bench of ITAT Kolkata in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol-Trib) has he....