2025 (12) TMI 840

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....te of order 24/07/2025. The impugned order was emanated from the order of the Learned Assistant Commissioner of Income-tax- 15(1)(1), Mumbai (in short, 'Ld.AO'), order passed under section 143(3) of the Act and the date of order 28/03/2015. 2. The Ld.AR argued and filed a paper book containing pages 1 to 48, which is kept on record. The only point agitated by the Ld.AR before the Bench relates to disallowing u/s 14A of the Act amount to Rs. 40,20,144/-. The assessee challenged the issue along with all other issues before the Ld.CIT(A). But the only issue relates for adjudication before the Bench is disallowance u/s 14A of the Act amount to Rs. 40,20,144/-. The assessee,in the return of income, suo motu made disallowance u/s 14A read with....

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....e assessee amounted to Rs. 21,40,52,000/- and whereas the Share Capital & Free Reserves as on 31-03-2012 was at Rs. 19.70 crores. The Ld. AR demonstrates that the investments were made out of the reserves of the company and hence no disallowances are warranted on account of interest u/s 14A of the Act. 3. The Ld. AR further argued that the assessee's case is fully covered by the order of Hon'ble Bombay High court in case of CIT vs. HDFC Bank Ltd. 366 ITR 505, held that If the assessee possesses interest-free own funds (share capital, reserves and surplus) which are more than the value of the investments, then a presumption arises that such investments are made out of own funds. Same view was taken by the Hon'ble Bombay High Court in CIT ....