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TMI Blog2015 (3) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the Tribunal has observed in paragraph 2 of the impugned order that "the Ld A.R submitted that the said disallowance is not warranted since the own funds available with the assessee exceeds the borrowed funds". The Ld A.R submitted that the same expression finds place in the later part of paragraph 2 of the order. He submitted that the assessee had submitted that own funds and other non-interest bearing funds were more than the investment made in the tax free securities. Accordingly he submitted that the expression used by the Tribunal is not appropriate. Accordingly he requested for modification of the above said expression in accordance with the submission made by the assessee. 3. The Ld A.R further submitted that the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 12.11.2014, wherever the expression ""since the own funds available with the assessee exceeds the borrowed funds" occurs, the following expression shall be substituted in that place. "since the own funds and other non-interest bearing funds were more than the investment made in tax free securities". (b) The existing paragraph 4 shall be substituted by the following paragraphs. "4. We notice that the assessee is putting forth its contentions against the impugned disallowance from different angles. All these contentions can be appreciated only if the relevant facts are available before us. The Ld A.R further submitted that the presumption of use of own funds and interest free funds is available, when both the own funds & inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he date of Balance sheet. We may explain our view with an example. Let us assume that the capital of the assessee is Rs. 1.00 lakh and the same was used to give rent advance and in purchasing office furnitures. Let us further assume that the assessee borrows interest bearing loan of Rs. 10.00 lakhs and uses the same for making investments. Hence, his Balance sheet as on the date of making investment would reflect as under:- LIABILITIES AMOUNT ASSETS AMOUNT Capital 1,00,000 Furniture 50,000 Loan funds 10,00,000 Office advance 50,000 Investments 10,00,000 Total 11,00,000 Total 11,00,000 If one examines the above Balance sheet, he can easily conclude that the investments have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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