Interest Expenses can’t be disallowed if Assessee had enough Own Funds

M/s. Bhoruka Investment Ltd. Vs. D.C.I.T. (ITAT Kolkata)  As far as dis allowance of interest expenses under Rule 8D(2)(ii) of the Rules is concerned, it is clear from the summarized balance sheet of the assessee from the financial years 2008-09 to 2011-12 that the assessee had non-interest bearing funds sufficient to cover the investments made in shares. It has been held by the Hon’ble Bombay High Court in the case of CIT vs Reliance Utilities and Power Ltd. (2009) 313 TR 340 (Bom) and CIT vs HDFC Bank Ltd (2014) 49 taxmann.com 335 (Bom) that where interest free funds and overdraft and loa...