9911796707
TMI Blog2020 (10) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.208 crores and therefore, the presumption is that the assessee invested the amounts from out of their own funds and therefore, the question of disallowing the interest component u/r. 8D(2)(ii) does not arise. In so far as consideration of investment which did not yield any dividend income for the purpose of calculating the disallowance u/r. 8D(2)(iii), it is the settled principle of law that only such investments which yielded exempt income during the year have to be considered for computing the average value of investment, and the investments which did not yield any exempt income shall not be considered. Admittedly, the assessee disallowed by following this calculation. Ld. CIT(A) rightly followed the decision of Special Bench of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue preferred this appeal stating that the ld. CIT(A) ignored the fact that the assessee had incurred huge interest expenses in relation to investments in the instruments income which is exempt. 4. The ld. DR submitted that when the assessee failed to produce documentary evidence to show that the investments were made from out of own funds available with the assessee and for such investments, no borrowed amount was spent, the Assessing Officer is justified in invoking the provisions of Rule 8D(2)(ii) of the Rules. So also, when there is an investment, though a part of it accrued dividend, the other investment does not lose its character as investment and any interest-bearing amount spent for such investments shall be considered for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he exempt income. There is no denial of the fact from the Revenue that as on 31.03.2014, the share capital of the assessee was ₹ 103.40 crores which is more than enough to cover the investments of ₹ 86.208 crores and therefore, the presumption is that the assessee invested the amounts from out of their own funds and therefore, the question of disallowing the interest component u/r. 8D(2)(ii) does not arise. In so far as consideration of investment which did not yield any dividend income for the purpose of calculating the disallowance u/r. 8D(2)(iii), it is the settled principle of law that only such investments which yielded exempt income during the year have to be considered for computing the average value of investment, and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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