Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 95 - AT - Income TaxDisallowance made u/s 14A r.w.r.8D - assessee submitted that investments were made out of own funds and no borrowed funds have been utilized and no other expenses were incurred - Held that:- The A.O. has not given any clear finding of incurring of expenses, and has not established nexus of expenses incurred with the earning of exempt income - The satisfaction of the A.O. as to the incorrect claim made by the assessee is a pre-condition and a necessity for invoking the applicability of Rule 8D whereas in this case A.O. has directly invoked provision of Rule 8D without rendering any opinion on the correctness or otherwise of the assessee’s claim - in favour of assessee. 1/4th ad-hoc disallowance of various expenses holding it to be of personal nature - Held that:- The assessee has incurred various expenses as listed in his paper book and suo-moto disallowed expenses from them. The A.O. has in addition to the disallowance made by assessee further disallowed the expenses. The disallowance of expenses by A.O. was adhoc in nature as he has not pointed out the expenses which are of non business in nature - as in the assessee’s own case in earlier years ITAT had restricted the disallowance pertaining to motor car and telephone expenses and the assessee has on the same basis suo-moto disallowed the expenses no point of any further disallowance - in favour of assessee.
|