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2015 (12) TMI 380 - AT - Income TaxAddition made by the AO u/s 36(1)(iv) - assessee as Revenue expenditure for payment towards interest on PF - CIT(A) deleted the addition - Held that:- Identical issue has been considered and decided by the coordinate bench of the tribunal in the assessee's own case for the assessment year 1999-00 as well as for the assessment year 2006-07 and 2007-08 that it is not in dispute that the AO made the disallowance of the interest paid by the assessee on the running balance of PF. This issue was involved in an earlier assessment year 1998-99, in the assessee's case, and the ITA while deciding the appeal of the assessee. As the Department has accepted a similar claim in similar circumstances in AY 1998-99 and also for the AY 2005-06 thus keeping in view the principle of consistency, the Revenue could not be permitted to raise an issue in isolation only for one year in the case of one assessee, while accepting the findings on the same issue in the case of other assessees and for the other years in the case of the assesssee.- Decided in favour of assessee Disallowance u/s 14A - Held that:- Since there is a frequent movement in the investment portfolio of the assessee therefore, the question which requires to be ascertained by indentifying the particular items of the expenditure debited by the assessee in the profit and loss account which can be apportioned u/s 14A. Accordingly, in the facts and circumstances of the case, we are of the considered opinion that this issue requires a proper verification and examination of the fact on the aspect of identifying the particular expenditure for the purpose of disallowance u/s 14A. The AO has not given any finding or identified the expenditure which can be allocated for earning the exempt income. Therefore, this issue is set aside to the record of the AO for proper verification and for identifying expenditure which can be treated as allocable for the purpose of earning the dividend income and consequently can be disallowed u/s 14A of the Act. We make it clear that the disallowance made u/s 14A and quantum of disallowance worked out as per Rule 8D can't exceed the actual expenditure debited by the assessee in the profit and loss account which has a nexus for earning exempt income. - Decided in favour of assessee for statistical purposes
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