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2013 (7) TMI 193 - ITAT MUMBAIDisallowance of expenditure u/s.14A r.w.r 8D - Held that:- The primary onus to exhibit that no indirect expenditure has, in fact, been incurred in respect of the tax-free income, so that no apportionment thereto would hold, is on the assessee. Investments are generally managed by the companies in a separate division, entail as does expertise. As such, to contend that no indirect expenditure stands incurred only as there has been no fresh investments during the year, would need being proved with reference to the actual management of the investment portfolio, as well as the assessee's accounts. Thus to clarify that the incurring of expenditure has no direct correlation with the earning of the income from the investments the two being independent variables disallowance has to be only in respect of the expenditure incurred, and in the instant case only in respect of indirect expenditure, where and to the extent it can be reasonably ascribed to the management of the investments. The matter is restored back to the file of the A.O. to enable the assessee to present its case before him. Levy of interest u/s.234C - Held that:- The charge is no doubt mandatory, but there is nothing consequential about it inasmuch as the same is to be worked out with reference to the tax on the returned income, so that it is inflexible, and would not vary with time, i.e., on assessment being made at a different income or being modified in the appellate proceedings. There being no finding in relation to the said levy in the orders of the authorities below, it is fit and proper that the matter is restored back to the file of the A.O. to whom the matter in relation to the disallowance u/s.14A remitted for verification of the assessee's claim.
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