2021 (3) TMI 1455

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....nafter referred to as Act) by the ld. Asst. Commissioner of Income Tax-14(2)(2), Mumbai (hereinafter referred to as ld. AO). 2. The only issue involved in this appeal of the assessee is as to whether the ld. CIT(A) was justified in confirming the disallowance made u/s. 14A of the Act r.w. Rule 8D(2)(iii) of the Rules amounting to Rs. 33,62,493/- in the facts and circumstances of the instant case. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is a public limited company engaged in the business of leasing, hire purchase, rent a car, transport solution services, granting loans and providing other services. The original return of income was filed by the assessee on 29/11/2012 decla....

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....he ld. AO in the assessment, but however, sustained the suo moto disallowance made by the assessee in the sum of Rs. 33,62,493/- as the same was voluntarily made by the assessee in the return of income. We find that the ld. CIT(A) had also given a categorical finding that assessee is having sufficient interest free funds in its kitty and hence, no disallowance of interest under Rule 8D(2)(ii) of the Rules could be made in the facts of the instant case in view of the decision of the Hon'ble Jurisdictional High Court in the case of HDFC Bank Ltd., reported in 366 ITR 505. This factual finding was not controverted by the revenue before us. 3.2. We find that assessee had made suo moto disallowance under Rule 8D(2)(iii) of Rs. 33,62,493/- and....