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TMI Blog2014 (11) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... ll these appeals is common, we have heard these appeals together and these appeals are being disposed of by this consolidated order, for the sake of convenience. 2. In the assessment year 2008-09, the Revenue has filed appeal, aggrieved by the order of ld. CIT(A) for deleting the addition of Rs. 33,90,461/- made under section 14A of the Income Tax Act, 1961 (the Act) read with Rule 8D of the Income Tax Rules, 12962 (the Rules). 3. Rival contentions have been heard and record perused. 4. Facts in brief are that the assessee is engaged in the business of supply of smart cards and smart card based solution, system integration and development of system integration software. During the course of scrutiny assessment, the AO disallowed an expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000/- which has been made as share application money was also from the appellant's own funds as it is evident from the submission made by the appellant company as per Annexure 'D' of the appellant's submission. In addition to this, it is also a fact on record that the appellant company's own fund is more than the investment made by the appellant company. Hence, the decision of Jurisdictional High Court in the case of Reliance Utilities & Power Ltd. (ITA No. 1398 of 2008) also goes in favour of the appellant company that the presumption for investment will be that the appellant company has made the investment out of its own fund rather than borrowed fund. Besides this, the fact remains that no exempt income was earned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessee-company. With regard to the disallowance of interest, the ld. CIT(A) has recorded the categorical findings to the effect that the investment was made by the assessee from its own fund and not from any borrowed funds. By refereeing Annexure 'A' filed by the assessee, the ld. CIT(A), observed that after verifying the bank statement as placed on record, the entire fund was so invested was out of the Assessee's own fund. The reliance was placed on the decision of jurisdictional High Court in the case of Commissioner of Income-tax v. Reliance Utilities and Power Ltd.. [2009] 178 TAXMAN 135 (BOM.) to the effect that the presumption for investment will be that the Assessee company has made the investment out of its own fund ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company in support of its contention as Annexure 'A' of the submission. Further to that, the ther investment of Rs. 8,50,00,000/- which has been made as share application money was also from the appellant's own funds as it is evident from the submission made by the appellant company as per Annexure 'D' of the appellant's submission. In addition to this, it is also a fact on record that the appellant company's own fund is more than the investment made by the appellant company. Hence, the decision of Jurisdictional High Court in the case of Reliance Utilities & Power Ltd. (ITA No. 1398 of 2008) also goes in favour of the appellant company that the presumption for investment will be that the appellant company has ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O. 9. In the appeal filed by the Assessee for the assessment year 2009-10, the Assessee is aggrieved by the order of ld. CIT(A) for confirming the disallowance of Rs. 4,25,000/- u/s 14A r.w.r.8D(2)(iii) of the Rules. 10. We have considered the rival contentions and perused the record and found that after relying on the decision of the jurisdictional High Court in the case of Godrej and Boyce Mfg Co.Ltd(supra), the ld. CIT(A) have given due justification and restricted the disallowance made u/s 14A with respect to administrative expenses. The ld. CIT(A) observed that the assessee company was to incur administrative expenses to ensure investment which is generating the exempt income, accordingly, he confirmed the disallowance of Rs. 4,25,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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