2020 (12) TMI 1142

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.... : Sri.Priyadarshi Mishra, JCIT-DR ORDER PER GEORGE GEORGE K, JM : This appeal at the instance of the assessee is directed against CIT(A)'s order dated 10.06.2019. The relevant assessment year is 2016-2017. 2. The solitary issue raised is whether the CIT(A) was justified in confirming the A.O.'s further disallowance of Rs. 66,830, u/s 14A r.w.r. 8D(2)(ii) of the I.T.Rules (assessee had....

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....wherein the A.O. had made an additional disallowance of Rs. 66,813 under the provisions of section 14A of the I.T.Act r.w.r. 8D(2)(ii) of the I.T.Rules. In doing so, the Assessing Officer rejected the contentions of the assessee that no portion of the borrowed funds was utilized for the purpose of investment and the assessee was having sufficient own interest free funds to cover up for the investm....

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....d by the order of the CIT(A), the assessee has filed this appeal before the Tribunal. The learned Counsel for the assessee has filed a paper book enclosing therein the balance sheet, the profit and loss account along with the schedules and the notes on accounts, for the year ending 31.03.2016. The learned AR reiterated the submissions made before the Income Tax Authorities. 7. The learned Depar....

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....The Hon'ble jurisdictional High Court in the case of CIT v. Microlabs Ltd. [(2016) 383 ITR 490 (Kar.)] had held that even in a situation where investments are from common pool, if non-interest bearing funds are more than the investments in tax free securities, no disallowance can be made u/s 14A of the I.T.Act r.w.r. 8D(2)(ii) of the I.T.Rules. The Hon'ble jurisdictional High Court while laying do....