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2018 (8) TMI 1485 - AT - Income TaxDisallowance u/s. 14A r.w. Rule 8D(2)(iii) - contention of the assessee is that the disallowance u/s. 14A cannot be made beyond the expenditure debited to P & L account in relation to earning of exempt income - Held that:- The total indirect expenditure debited by the assessee to P & L account is to the tune of ₹ 25,78,927/-. The claim of the assessee is expenditure to the tune of ₹ 22,43,620/- is not in relation to earning of exempt income. The expenditure that may be considered for making disallowance u/s. 14A is ₹ 3,35,307/- (Rs.25,78,927/- - ₹ 22,43,620/-). We observe that the assessee had furnished the details of indirect expenditure before the Commissioner of Income Tax (Appeals), however, the Commissioner of Income Tax (Appeals) has not considered the submissions of the assessee on this aspect. We find that in the case of Gillette Group India (P.) Ltd. Vs. Assistant Commissioner of Income Tax [2012 (6) TMI 406 - ITAT DELHI] has restricted the disallowance u/s. 14A to the extent of expenditure debited to P & L account. Similar view has been taken in the case of Income Tax Officer Vs. Pioneer Radio Training Services Pvt. Ltd.[2015 (1) TMI 964 - ITAT DELHI] and in the case of M/s. Search Enviro Ltd. Vs. ACIT [2012 (3) TMI 509 - ITAT MUMBAI] - in principle we agree with the proposition mooted by the ld. AR - the indirect expenditure referred to by the ld. AR needs verification. Accordingly, we deem it appropriate to remit this issue back to the file of Assessing Officer to examine the expenditure relatable to earning exempt income and thereafter made disallowance u/s. 14A accordingly - Decided in favour of assessee for statistical purpose.
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