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2012 (7) TMI 210 - AT - Income TaxDis-allowance u/s 14A of interest expenditure under Rule 8D(2)(ii) and 0.5% of the average value of investments under Rule 8D(2)(iii) - Held that:- It is observed that major portion of interest is paid on vehicle loan taken by the assessee and the other payments are either to the tax department or to the bank. Thus, Rule 8D(2)(ii) is not applicable in the instant case and hence disallowance of proportionate interest expenditure is not in accordance with law. However, since assessee made huge investments in shares, it is not possible to ascertain the ratio of expenditure which is relatable to exempt income, it is found that AO has rightly applied the formulae of 0.5% of the average value of investment for dis-allowance, which is in accordance with law - Decided partly in favor of assessee Foreign travel undertaken by the Director and his wife for business purpose - dis-allowance - travel scheduled from 22.04.2008 to 05.05.2008 - AY 08-09 - Held that:- Following matching principle, expenditure deserves to be considered in subsequent year and not in the year under consideration. Dis-allowance of amount paid to SEBI for non compliance of certain regulations of SEBI on the ground as levy for infraction of statutory law - assessee contended that non-compliance do not result in any harm to investors, promoters or any other parties - Held that:- No material was placed to contradict the claim of the assessee. In light of decision in case of CIT vs. Prasad and Co (2012 (2) TMI 124 (HC)) amount paid to SEBI is allowable as deduction.
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