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2015 (11) TMI 640 - AT - Income TaxDisallowance of NSE penalty expenses - CIT(A) deleted the addition - Held that:- Payment is towards compensation for delayed submission of compliance report to NSE and that too which is not an offence or towards infraction of law. It view of aforesaid facts, ratio of aforesaid decision relied upon by AO is not applicable to the facts of case of appellant. The case of appellant is squarely covered by decision of Crest Capital Market vs. ITO [2009 (1) TMI 553 - ITAT, MUMBAI] and respectfully following said order, addition made by the Assessing Officer is deleted. - Decided in favour of assessee. Disallowance of interest - CIT(A) deleted the addition - Held that:- similar disallowance was made in the earlier years. In the AY 2004-05, the matter travelled upto the stage of Tribunal and the Tribunal had deleted the disallowance and the disallowance made in AY 2005-06 was deleted by the predecessor of the ld.CIT(A). - Decided in favour of assessee. Disallowance u/s 14A - CIT(A) restricted part addition - Held that:- Since the Rule-8D of I.T.Rules, 1962 is not applicable, therefore in our considered view the AO was not justified in applying the Rule 8D for making disallowance. The ld.CIT(A) has given a finding that the assessee was having substantial funds and lesser borrowed funds. This finding of the ld.CIT(A) is not controverted by the Revenue by placing any contrary material on record, therefore, we do not see any reason to interfere with the finding of the ld.CIT(A), same is hereby upheld. - Decided in favour of assessee. The assessee has made investment and earned exempt income of ₹ 3 lacs. Therefore, we do not see any reason to interfere with the finding of the ld.CIT(A) on this issue because it cannot be assumed that the exempt income has been earned without incurring any administrative expenditure. Thus, ground raised in assessee’s cross-objection is partly allowed.
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