TaxTMI 
TaxTMI 
2024 (7) TMI 792
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....(for short 'the Act') wherein, the appellant-Revenue has proposed the following substantial question of law arising from the judgment and order dated 15th September, 2023 passed by the Income Appellate Tribunal, Ahmedabad "D" Bench, Ahmedabad (for short 'the Tribunal') in ITA No. 60/Ahd/2023 for Assessment Year 2018-19: "(i) "Whether on the facts and in the circumstances of the case and in law, the ITAT has erred in deleting addition of Rs. 5,04,35,666/- on account of interest expenses u/s 14A r.w.r 8D(2) (iii) of the IT Rules, 1962 amended with effect from 02/06/2016?" 3.1. The Tribunal passed the impugned order as a common order for ITA Nos. 55 to 57/Ahd/2023 for Assessment Year 2016-17 to 2018-19 filed by the respondent-Assessee alon....
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....e made by the assessee was deleted without any further disallowance by CIT (Appeals) in the appeal, which was accepted by the Department. 3.6. The assessee therefore contended that at the most disallowance can be to the extent of the dividend receipt of Rs. 5,293/-. The CIT(Appeals) accepting the contentions of the assessee deleted the addition on the ground that the assessee was having sufficient interest in the funds in the form of share capital and reserves for making investments earning exempt income. 3.7. Being aggrieved, the appellant-Revenue has preferred an appeal before the Tribunal. The Tribunal after considering the facts of the case upheld the conclusion arrived at by the CIT (Appeals) to the effect that the assessee was havin....
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....f decision of Hon'ble ITAT is mentioned as under: During the course of assessment proceedings, the assessee has not furnished any evidence that the interest free fund was available with it on the date of investment. The assessee has fixed assets and other investments of much more value of the interest free fund it had. Therefore, it is undisputable fact that the assessee had already invested its own fund in fixed assets and investments for the purpose of its business. Thereafter for meeting the other business requirement, it has also borrowed fund on which it is paying interest. The assessee has not been able to establish these only interest free funds were used for investment in securities wherefrom income is exempt. Further, ....