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2023 (8) TMI 1442 - ITAT AHMEDABADRectification of mistake - computation of Disallowance u/s 14A r.w.s. 8D - contention of the assessee that AO has to confirm the disallowance of administrative expenses u/s14A and dismiss the appeal of the Revenue thereby contending that in earlier Assessment Year i.e. A.Y. 2010-11 the Hon’ble High Court [2019 (6) TMI 1006 - GUJARAT HIGH COURT] has deleted the disallowance made as observing that in a case where assessee was having sufficient funds available with it, more than amount invested for earning the dividend, the disallowance in respect of interest expenditure u/s 14A r.w.r. 8D of the Rules is not permissible - HELD THAT:- From the perusal of [2023 (4) TMI 334 - ITAT AHMEDABAD] the contentions of the Ld. AR that no satisfaction was recorded has been taken into account and after taking cognisance of the same, the Tribunal has come to the conclusion that the Assessing Officer has looked into the aspect of element of administrative expenses and directed the Assessing Officer to take 0.5% thereby invoking the said Rule i.e. Rule 8D. The contentions of the AR that current liabilities and provisions should not be reduced from the opening and closing stock of current assets should have been taken into account by the AO. As an impact, simplicitor directing the AO to confirm the disallowance and administrative expenses u/s 14A to the tune of Rs.15 lakhs will not be appropriate in the present Assessment Year and, therefore, the Revenue’s appeal has been partly allowed for statistical purpose with direction to the Assessing Officer to take all the element into account as well as administrative expenses which has been incurred by the assessee should be taken into account while allowing the same in the actual amount of administrative expenses and not on the superficial basis. At the time of hearing, the Ld. AR relied upon the decision of Saurashtra Kutch Stock Exchange Limited [2008 (9) TMI 11 - SUPREME COURT] but in the present case the same it will not be applicable as the earlier decisions of Hon’ble High Court in Assessee’s own case has been considered and each assessment year has to be looked independently on factual aspects especially expenses and interest earned. Therefore, there is no need to interfere with the order and there is no need to rectify the same. Decided against assessee.
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