2023 (1) TMI 713 - AT - Income Tax
Disallowance u/s 14A r.w.r. 8D - Working of expenses attributable to exempt income as per Rule 8D - HELD THAT:- No interest disallowance is warranted under Rule 8D(2)(i) in the year under consideration.
As further observed that in the immediately preceding year 2010-11, a sum of Rs. 1,71,87,853/- was disallowed under Rule 8D(2)(iii) which stands deleted by the Tribunal vide its order [2021 (11) TMI 1134 - ITAT DELHI] on the basis of the facts pertaining to that year.
In the AY under consideration the assessee submitted working of disallowance on taxable investment under Rule 8D(2)(iii) amounting to Rs. 23,75,000/- before the Ld. CIT(A). Since the assessee had already made disallowance of Rs. 8,89,763/- suo-moto out of administrative expenses incurred, it offered disallowance of Rs. 14,85,237/- under section 14A r.w. Rule 8D which has been accepted by the Ld. CIT(A).
Having gone through the facts and circumstances of the assessee’s case and the decision of the Hon’ble Supreme Court in Reliance Industries Ltd. [2019 (1) TMI 757 - SUPREME COURT] relied upon by the Tribunal in the preceding year and the decisions in M/s. Cheminvest Ltd. [2009 (8) TMI 126 - ITAT DELHI-B] AND Holcim India (P) Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] followed by the Ld. CIT(A), we do not find any infirmity in the order of the Ld. CIT(A) which we uphold. Consequently, we reject the appeal of the Revenue.