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TMI Blog2022 (10) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... f return of income for the concerned assessment year. Following the same, we set aside the orders of the authorities below and delete the addition. Disallowance u/s 14A - Sufficiency of own funds - HELD THAT:- We note that assessee in this case has earned exempt income. All the investments for the same were done in the earlier years. Assessee s claim was that no borrowed funds were used to make the investment. Authorities below have rejected the same on the ground that assessee should have maintained separate books. However, as held in the case of CIT vs. Reliance Utilities Power Ltd. [ 2009 (1) TMI 4 - BOMBAY HIGH COURT] and in CIT vs. HDFC Bank Ltd.[ 2014 (8) TMI 119 - BOMBAY HIGH COURT] when assessee has sufficient interest free ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/- out of which Rs.78,892/- was employees contribution to provident fund and Rs.25,622/- was employees contribution to ESI is unjust and against the facts and circumstances of the case. 3. Action of the ld. CIT (A) in confirming the addition of Rs.3,48,419/- made on account of disallowance u/s 14A read with rule 8D is unjust and against the facts and circumstances of the case. 3. Apropos the issue of disallowance of employees provident fund and ESI dues : On this issue, employees contribution to ESI and provident fund was disallowed by the AO u/s 36(1)(va) read with section 2(24)(x) of the Income-tax Act, 1961 (for short the Act ) as the same were deposited after the due date mentioned in the specific Act but within the du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lcutta High Court in the case of M/s. Dhanuka Sons vs. CIT, Central 1 in ITA No.633 of 2004 and concluded as under :- Moreover, on perusal of the details of interest expenditure furnished during the course of hearing, it is found that some of the interest expenditures (i.e. Interest on Packing Credit loan, Interest on Discounting of Bills and Interest on Vehicle Loan) were for specific business purposes of the assessee. As regards the remaining interest expenditure i.e. interest on term loan, the assessee failed to prove the quantum of Interest expenditure in relation to exempt income. Since the accounts of the assessee for taxable and exempt income were not maintained separately and the assessee did not file any specific explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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