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2015 (3) TMI 139 - ITAT AHMEDABADDisallowance of deduction as bad debts - CIT(A) deleted addition - Held that:- CIT(A) vide deleting the addition has noted that Assessee has fulfilled all the requirements u/s. 36(1)(vii) for claiming the amount as bad debts. He further relying on the decision Hon’ble Apex Court in the case of TRF Ltd. Vs. CIT reported in [2010 (2) TMI 211 - SUPREME COURT ] allowed the claim of Assessee. Before us Revenue has not brought any material on record to controvert the findings of ld. CIT(A). We further find that the decision relied upon by ld. D.R. are distinguishable on facts and do not apply to the present case. In view of these facts we find no reason to interfere with the order of ld. CIT(A) Thus this ground of Revenue is dismissed - Decided in favour of assessee. Disallowance u/s 14A - CIT(A) deleted addition - Held that:- Assessee was having shareholders funds comprising of Capital, reserves and surplus which were far in excess of the investment. In the case of Reliance Utilities (2009 (1) TMI 4 - HIGH COURT BOMBAY) the Hon’ble Bombay High Court held that that if there are funds available both interest-free and overdraft and/or loans taken, then a presumption would arise that investments would be out of the interest-free funds generated or available with the company, if the interestfree funds were sufficient to meet the investments and therefore, interest was deductible. Further CIT(A) has also given a finding about availability of sufficient interest free funds. We further find that Revenue has not brought any material on record to controvert the findings of ld. CIT(A). In view of these facts, we find no reason to interfere with the order of ld. CIT(A) and thus this ground of Revenue is dismissed. - Decided in favour of assessee.
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