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TMI Blog2013 (11) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... taken the assessee has utilized only Rs.13.66 lakhs for margin deposit with stock broker - The disallowance shall be restricted to interest on Rs.13.66 lakhs - Decided in favour of assessee. Disallowance of interest u/s 14A read with rule 8D – Held that:- In view of the exempt income shown by the assessee in return of income – the disallowance u/s 14A read with Rule 8D is reasonable and justif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o new loan taken during the year. This banking finance was taken more than 6-7 years old. It was also stated that the loan taken from the bank was not invested in shares or securities, the income of which is exempted under section 10(33) of the Act. The contention of the assessee was not found acceptable as the Assessing Officer noted from the balance-sheet that the assessee has given loans and ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount was employed for the purpose of business of the firm only. The details of bank loan employed by the assessee was also filed. The bank loan utilised by the assessee was about Rs. 13.66 lakhs. After considering the submission, the learned Commissioner of Income-tax (Appeals) noted that business of the assessee is of export of animal feed and by the assessee's own admission the bank loan has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department has not taken into consideration that there was capital asset with the assessee of Rs. 1.91 crores on which no interest has been paid by the assessee. Therefore, I am of the considered view that the entire interest should not have been disallowed by the Assessing Officer as interest can be disallowed only on the amount of Rs.13.66 lakhs which was deposited with share broker companies j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the Assessing Officer. After considering the submission, I also do not find any unreasonableness in the order of the Assessing Officer as well as the learned Commissioner of Income-tax (Appeals) as disallowance has been made as per rule 8D. Accordingly, I also confirm the order of the learned Commissioner of Income-tax (Appeals) on this issue. In the result, the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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