2019 (5) TMI 1522

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.... the learned Counsel for the assessee, there is mistake apparent from record in the order of the Tribunal crept in Para 6 of this order. The same para is corrected and may be read as under: - "6. The next common issue in these appeals of assessee is without prejudice to the above issue, is as regards to exemption of interest under section 10(23G) of the Act should be granted after deducting actual interest cost instead of notional interest cost. For this assessee has raised the identically worded grounds in both the years and facts and circumstances are also identical as conceded by both the sides. Hence, we will take the grounds from AY 2006-07 and decide the issue. The following are the grounds raised by the assessee: -. "1.2 Without ....

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....er Section 10(23G) of the Act is to be granted at interest income earned by the Bank and accordingly, the exemption granted under section 10(23G) of the Act is to be enhanced by Rs. 86,552,847/- and the income assessed is to be reduced accordingly." 3. According to the learned Counsel for the assessee, there is mistake apparent in record vide Para 7 of this order. The same para is corrected and may be read as under: "7. At the outset, the learned Counsel for the assessee stated that this issue is covered in favour of assessee by the Tribunal decision as reproduced above of the Tribunal order in ITA No. 7361/Mum/2005 for AY 2000-01 order dated 14-08-2013 and also for AY 2005-06 in ITA No.347/Mum/2008 order dated 23-09-2015 wherein Tribuna....

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....s out of mixed funds are to the tune of Rs. 236.02 crores only, which happens to be merely 9.39 % of the aggregate amount of the own funds of the Assessee. Under these circumstances, investments in shares and loans can be presumed to have been made out of own funds. This view has also been supported by another judgment of Hon'ble Bombay High Court in the case of CIT vs. HDFC Bank Ltd., supra. Thus, respectfully following the judgment of Hon'ble Coordinate bench in the own case of the assessee and in view of the judgments of Hon'ble jurisdictional High Court, we hold that deduction for the interest cost incurred was to be taken only in relation to earmarked borrowings utilized by the assessee for the purpose of granting loans to the enterpri....