KIRLOSKAR PNEUMATIC CO. LTD. Vs. ADDL. CIT

JUDGEMENT

(1.) THIS appeal filed by the assessee is directed against the order dated 30 -10 -2013 of the CIT(A) -I, Pune relating to Assessment Year 2007 -08.

(2.) THE only effective ground raised by the assessee reads as under:

(3.) THE Ld. Counsel for the assessee submitted that there was no justification on the part of the revenue authorities to disallow the interest expenditure of Rs. 2,81,400/ -. Referring to the audited accounts of the company, he submitted that the company has sufficient interest free own funds and all the investments were made out of own funds and no borrowed funds have been utilized. He submitted that the average value of investments is hardly Rs. 3.61 crores whereas the total own funds of the assessee company are more than Rs. 84 crores. Referring to the decision of the Hon'ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd. reported in : 313 ITR 340 he submitted that the disallowance of interest to the extent of Rs. 2,81,400/ - may be deleted. So far as disallowance of expenses amounting to Rs. 44,579/ - under Rule 8D(2)(iii) is concerned he did not press for the same.