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TMI Blog2022 (8) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... and thus assessee had not paid excessive interest on the borrowings. He has further given a finding that the addition made by AO was based on erroneous working. Before us, Revenue has not pointed any fallacy in the findings of CIT(A). In such a situation, we find no reason to interfere with the order of CIT(A). Thus the ground of Revenue is dismissed. Disallowance u/s 14A - grievance of the assessee in this ground is that AO had considered the investment in mutual funds while working out the disallowance under Rule 8D - HELD THAT:- On perusal of the investments schedule placed in the audited Balance Sheet reveals that assessee has stated investment in mutual funds and also stated the investment in equity shares of ICICI Advantages - I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the methodology adopted by the Assessing Officer for computation of interest rate and subsequently in deleting the disallowance of Rs. 2,12,94,303/- on account of interest expenses. 2. (a) The order of the CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal. 4. On the other hand, the assessee vide CO No. 99/Del/2019 has raised the following grounds. 1. That the appeal filed by the ACIT Central Circle 19 Delhi is defective, deficient and void an initio. 2. That the Ld. CIT(A) has rightly accepted the contentions of the respondent and deleted the erroneous disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat assessee had advanced loans/advances to various parties including share application money, loans to group companies etc., on which either assessee had not charged any interest or had charged very less interest as compared to the interest paid by the assessee. Assessee was asked to explain as to why interest paid on loans taken corresponding to interest received from advances should not be disallowed to which assessee made the submissions which was not found acceptable to AO. AO thereafter, on the basis of calculation made at page 5 to 7 of his order worked out the average rate of interest paid by the assessee @ 16.59% and the average interest earned by the assessee @ 13.80%. He thereafter, concluded that assessee was paying interest @ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated the submissions made before the lower authorities and supported the order of CIT(A). 9. We have heard the rival submissions and perused the material available on record. The issue in the present ground is with respect to the deleting the addition on account of interest that should have been charged by assessee on the amount advanced by it and which was made by AO but deleted by CIT(A). AO on the basis of working given in the assessment order had concluded that assessee had charged lower interest on the amount advanced as compared to the higher interest paid on the amount borrowed. AO thereafter, worked out the interest that should have been charged by the assessee. When the matter was carried before CIT(A), CIT(A) after considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule of investment which is listed at page 135 of the paper book. From the aforesaid schedule, he pointed that assessee in the audited Balance Sheet has stated the investment in equity share of ICICI Advantages for which the assessee is seeking exclusion. He therefore submitted that in such a situation, the AO was fully justified in working out the disallowance after considering the aforesaid investments and therefore the ground raised by assessee has no merits. 14. We have heard the rival submissions and perused the material available on record. The grievance of the assessee in this ground is that AO had considered the investment in mutual funds while working out the disallowance under Rule 8D of I.T. Rules. It is the submission of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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