2019 (8) TMI 1694

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....d to as Act) dated 26/03/2013 by the ld. Asst. Commissioner of Income Tax, Central Circle-29, Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in this appeal is with regard to the disallowance made u/s.14A of the Act read with rule 8D of the rules in the sum of Rs. 11,82,55,983/- under normal provisions of the Act as well as in computation of book profits u/s.115JB of the Act. 3. We have heard the rival submissions. We find that the assessee has received dividend of Rs. 5,75,03,434/- and claimed the same as exempt u/s.10(34) of the Act in the return of income. The assessee did not make any disallowance of expenses incurred for the purposes of earning such exempt income in the return of income. The ld. AO app....

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.... facts and it goes to the root of the matter. Hence, we are inclined to admit the additional ground and take up for adjudication. The ld. AR placed on record, the copy of the order of this Tribunal in its own case passed for A.Y.2008-09 in ITA No.6900/Mum/2011 dated 04/04/2016 wherein it had been categorically held that the assessee is having sufficient own funds in its kitty and hence, the presumption that own funds have been used for making investments in various companies goes in favour of the assessee in the light of the decision of the Hon'ble Jurisdictional High Court in the case of Reliance Utilities and Power Ltd., reported in 313 ITR 340. This Tribunal in A.Y.2008-09 in assessee's own case had deleted the disallowance of interest m....