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2013 (9) TMI 298 - AT - Income TaxDisallowance u/s 14A - Held that:- the assessee has earned exempt income of Rs. 7,09,157, as dividend and no expenditure under section 14A was disallowed by the assessee. The Assessing Officer also, without any basis, has taken 17% of the administrative expenditure without looking to the nature of expenditure debited in the Profit & Loss account. Looking to the fact that the assessee has not incurred any interest expenditure, the disallowance of Rs. 45,000 on account of other administrative expenditure seems to be reasonable. Consequently, we do not find any reason to disturb the findings given by the Commissioner (Appeals) and the same are hereby upheld for the reason that, admittedly, the provisions of rule 8D are not applicable for the assessment year 2005-06 as held by the Hon'ble Jurisdictional High Court in Godrej & Boyce Mfg. Co. Ltd. v/s DCIT, (2010 (8) TMI 77 - BOMBAY HIGH COURT) - Decided against Revenue. Unexplained investment u/s 69 - Held that:- The assessee, before the Assessing Officer, contended that it has made investment of Rs. 5,00,000 only in Reliance Mutual Funds and the second investment of Rs. 5,00,000 has not been made by it. To clarify this contention, the assessee has filed the proof of investment made in the name of associate concern Brook Trading Company Pvt. Ltd. which had made the investment. Along with that a photocopy of cheque dated 1st March 2005, and the bank account was given before the Commissioner (Appeals). The Commissioner (Appeals), after verifying these details, has deleted the addition. The Commissioner (Appeals) having a co-terminus power with that of the Assessing Officer can very well examine these facts in the course of appellate proceedings. He has merely verified the assessee's contention from the copy of cheque and bank account along with the proof of investment in the name of Brook Trading Company Pvt. Ltd. Under these circumstances, it cannot be held that there is a violation of rule 46A. Thus, under these facts, the findings given by the Commissioner (Appeals) are affirmed - Decided against Revenue. Commissioner (Appeals) and, accordingly, the same is confirmed - Decided against Revenue.
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