2017 (11) TMI 1942

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....als for A.Y. 2010-11 to 2013-14. All these appeals are directed against the orders passed by the learned CIT(A)-1, Thane. All these appeals were heard together and are being disposed of by this common order, for the sake of convenience. 2. We shall first take up the appeals filed by the assessee. The solitary issue urged in both the appeals and cross objections filed by the assessee relates to disallowance made u/s. 14A of the Act. The Assessing Officer noticed that the assessee has received exempt dividend and capital gains, but did not make any disallowance u/s. 14A of the Act. Hence the Assessing Officer computed disallowance u/s. 14A of the Act and accordingly disallowed the interest and administrative expenses by applying provisions o....

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.....10 797.79 18.98 6. Perusal of the above said table would show that the own funds available with the assessee is in excess value of mutual funds held by the assessee. Other investments made by the assessee consisted of fixed deposits made with the Bank and investment made in shares of Cooperative Bank, income from both of which is not exempt. Since own funds available with the assessee is in far excess of value of investment made in mutual funds, there is merit in the contentions of the assessee that the disallowance of interest expenditure is not called for, in view of the decision of Hon'ble Bombay High Court rendered in the case of HDFC Bank Ltd. (supra). Accordingly, we set aside the order passed by the learned CIT(A) on this iss....