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2016 (12) TMI 1080 - AT - Income TaxAddition u/s 14A - suo motu disallowance by assessee - Held that:- The total expenses charged to the profit and loss account excluding the donations and bad debts were ₹ 24,11,959/- and the disallowance if is calculated as per section 14A rule 8D(2)(iii) comes to ₹ 1,22,90,682/- which is unreasonable and excessive and therefore the assessee suo motto disallowed a sum of ₹ 9,00,907/- out of expenses as relating to exempt income. We further find that the AO without recording any satisfaction with the reference to the books of accounts as regards the expenses attributable to exempt income made the additions of ₹ 15,11,000/- apart from the suo motto disallowance by the assessee of ₹ 9,00,907/-. In our opinion the disallowance as made by the assessee is reasonable and justified and no further disallowance without pointing out any defect in working of the assessee of the said disallowance with reference to the books of accounts. Thus set aside the order of the CIT(A) by restricting the disallowance u/s 14A read with rule 8D to ₹ 9,00,907/- as voluntarily made by the assessee and according the appeal of the assessee is allowed.
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