HC confirms presumption of investments out of interest-free funds

PCIT Vs Shapoorji Pallonji & Co. Ltd. (Bombay High Court) When interest-free & interest bearing funds available, investments assumed to be made out of interest-free fund The issue under consideration is whether the addition made by AO u/s 14A with respect of Interest free funds is justified in law? High Court states that the decision of this Court in Reliance Utilities and Power Limited (supra) wherein it has been held that if there are funds available with the assessee, both, interest-free and overdraft and / or loans taken then a presumption would arise that investments would be out ...