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2015 (8) TMI 7 - AT - Income TaxDisallowance u/s. 14A - Held that:- With respect to disallowance of indirect interest as per Rule 8D(2)(ii) we find that the CIT(A), after considering the submissions of the Assessee has directed the A.O to work out the disallowance as directed by him in the order. Before us, ld. A.R. could not point out any fallacy or inconsistency of law in the directions of CIT(A) and therefore we find no reason to interfere as far as the disallowance on account of indirect interest is concerned. With respect to disallowance of administrative expenses as per Rule 8D(2)(iii) is concerned, assessee has submitted that it has incurred no expenses for earning the income but on the other hand ld. CIT(A) is of the view that the directors and other employees of the Assessee must be spending sufficient and energy in running day to day business and monitoring the business of the firms in which the Assessee is a partner. Before us, ld. A.R. has not placed any material on record like the ledger accounts of the firm, or any other material which could justify of not incurring of expenses including administrative expenses for earning tax free income. At the same time ld. CIT(A) has also presumed the spending of time and energy by the officials of the Assessee for running of the firms from which Assessee has earned tax free income. In view of the contrary submissions of both the parties before us and in the absence of any material on record, we are of the view that this aspect needs a factual verification and finding. We therefore remit the issue to the file of A.O to give a finding on the aforesaid and decide the issue afresh. - Decided partly in favour of assessee for statistical purposes.
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