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TMI Blog2017 (7) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee had own fund of 47 crores(app.),whereas investments, resulting in exempt income, were of 4 crores(app.). The honorable jurisdictional High Court in the case of HDFC Bank Ltd (2016 (3) TMI 755 - BOMBAY HIGH COURT) has held that if an assessee possessed sufficient own fund the presumption was that investment was made from own fund and not from borrowed funds. Similar view was taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpleted the assessment, u/s.143 (3) of the Act, on 07/ 02/2013,determining its income at ₹ 6.81 crores. 2. Effective ground of appeal is about disallowance made under section 14A of the Act, amounting to ₹ 14.18 lakhs. During the assessment proceedings, the AO found that the assessee had earned dividend income of ₹ 34.08 lakhs, that on its own it had made a disallowance of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including term and other loans were deposited that from the same bank account all expenditure is were incurred including payment for making investments. Invoking the provisions of rule 8D of the Rules, he made a disallowance of ₹ 18.32 lakhs. Considering the suo motu disallowance of ₹ 3.43 lakhs made by the assessee, the AO added a sum of ₹ 14, 88,400 /-to the total income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no disallowance under rule 8D(ii)should have been made, that the assessee itself at made a disallowance of which 3.43 lakhs under the head admission to expenses, that the AO had not given any finding about the correctness of the claim of the assessee,that without rejecting the claim made by the assessee the AO should not have made further disallowance. He referred to the case of Godrej and B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that if an assessee possessed sufficient own fund the presumption was that investment was made from own fund and not from borrowed funds. Similar view was taken by the Hon'ble Court in the case of Reliance Utilities & Power Ltd.(313 ITR340). Besides, the assessee had disallowed ₹ 3.43 lakhs on its own under the head administrative expenses and the AO had not given any reason for rejecting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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