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TMI Blog2014 (5) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld – Decided against Revenue. - ITA No. 5031/Del/2012 - - - Dated:- 30-4-2014 - Shri G. D. Agrawal And Shri A. D. Jain,JJ. For the Petitioner : Shri Ashok Kumar Jain Shri Ashu Goel, CAs For the Respondent : Smt. Nidhi Srivastava, CIT,DR ORDER Per A. D. Jain, Judicial Member: This is Department's appeal for Assessment Year 2009-10, emanating from the order dated 17.07.2012, passed by the Ld. CIT (A)-XIII, New Delhi, contending that the Ld. ClT (A) has erred in restricting the disallowance of Rs.24,74,706/-, as worked out by the Assessing Officer in accordance with the provisions of Section 14A of the IT Act read with Rule 8D of the IT Rules, to Rs.1,82,374/-. 2. The facts are that the assessee compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The Id. Counsel for the assessee, on the other hand, has placed strong reliance on the impugned order. 6. The assessee, it is seen, had received all the investments, on which, dividend had been received, prior to the year under consideration. It had also not incurred any expense to earn these dividends, they having directly been credited to the bank account of the company through ECS by the dividend paying entity. Apropos the unquoted equity shares of Transrail Logistics Ltd., in the balance sheet, these were shown as old investments made in the earlier year in the quoted equity shares and unquoted mutual fund units, amounting to Rs.60,30,414/, and new investments received during the year, i.e., unquoted equity shares and optional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own funds, on account of profits accrued during the year. Thus, the investment was made out of the assessee's own funds and it did not have any nexus with borrowed funds. Further, the borrowed funds of Rs.4,74,44,057/-, used to acquire the assets transferred to Transrail Logistics Ltd., were also transferred to Transrail Logistics Ltd. Then, the assessee company is a profit making company. Its accrual of profit and capital available is more than the investment made in the shares and securities. As on 31.03.08, the assessee's borrowed funds were of Rs.18,184 lacs, whereas its assets were of Rs.28,189 lacs. As on 31.03.09 the borrowed funds were of Rs.16,603 lacs and the assets were of Rs.27,159 lacs. 7. All these facts were duly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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