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TMI Blog2020 (10) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below and remit the matter back to the file of the Assessing Officer with the direction that he shall examine the balance sheet of the assessee and ascertain as to whether as on the date of investment, the assessee has sufficient own funds or not. If the assessee is having own funds as on the date of investment, then the assessee is entitled to claim exemption and there is no need of disallowance under section 14A of the Act r.w. Rule 8D(2)(ii). Disallowance under Rule 8D(2)(iii) - Assessing Officer is directed to consider only those investments for computing average value of investment which yielded exempt income during the year under consideration as per Rule 8D(2)(iii) in view of the Delhi Special Bench of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act r.w. Rule 8D at ₹ 29,75,079/-. On appeal, the ld. CIT(A) confirmed the disallowance made under section 14A r.w. Rule 8D. 3. On being aggrieved, the assessee is in appeal before the Tribunal. By referring to the financial statements filed in the form of paper book, the ld. Counsel for the assessee has submitted that the assessee has sufficient own funds/internal accruals for making investments. The interest expenditure incurred by the assessee should not have been disallowed under section 14A r.w. Rule 8D since no part of the borrowed funds were used by the assessee for making investments and prayed for deleting the disallowance of expenditure. On the other hand, the ld. DR supported the orders of authorities below. 4. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed the disallowance under section 14A r.w. Rule 8 D. since the assessee has not objected to the working of the disallowance. Before us, it was the contention of the ld. Counsel for the assessee that the Assessing Officer failed to appreciate that under capital account, the assessee had balance amount of ₹ 6,25,90,602/-, but the assessee invested in shares only for ₹ 4,83,82,452/-. Therefore, it was the submission that the assessee made the investment in shares out of his own fund. Though the assessee has borrowed an amount of ₹ 20 crores, the said amount has nothing to do with the investments made by the assessee. The said facts are not discussed in the assessment order while concluding the assessment. 4.1 On perusal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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