2016 (4) TMI 1405

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....5.08.2011of CIT(A) the assessee has filed the present appeal. Assessee-company,engaged in the business of real estate development and hotelier,filed its return of income declaring total income of Rs. 38,25,67,357/-.The AO completed the assessment on 30.12.2012,u/s. 143(3) of the Act,detrmining the income of the assessee at Rs. 47.72 crores. 2. Effective ground of appeal is disallowance made u/s. ....

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....up companies,that it had used the borrowed funds for the purpose of business.Referring to the provisons of section 14 r.w.Rule 8D,the AO made a disallowance of Rs. 9.45 Cores(Rs. 8.77 Crores under rule 8D(ii)+ Rs. 68.69 lakhs under Rule 8D(iii)of the Rules). 3.During the appellate proceedings before the FAA,the assessee argued that investment in shares had been made out of non interest bearing fu....

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....t increase in investments was because of investment made in immovable properties.He relied upon the decisions/judgment of the Tribunal and Hon'ble High Court delivered in assessee's own case(ITA/4431-4050/Mum/2000, ITA.s. 4759-60/Mum/2001,Income-tax appeal No.1260 of 2009).Departmental Representative (DR) supported the order of the FAA. 5. We find that the assessee had share capital of Rs. 60,48,....