Case Law Details
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 of the interest-free funds generated or available with the assessee if the interest-free funds were sufficient to meet the investments. In the facts of that case, it was noted that the said presumption was established considering the finding of fact returned by the first appellate authority as affirmed by the Tribunal which is identical in the present case. In the light of the above, the appeal filed by the revenue dismissed.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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