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2018 (5) TMI 243 - ITAT DELHIDisallowance u/s 14A - Held that:- As relying on Maxopp Investment Ltd [2018 (3) TMI 805 - SUPREME COURT OF INDIA] we uphold the finding of the Ld. CIT(A) in considering the investment in shares of M/s Gwalior steels private limited for working out average value of investment required for rule 8D(2)(ii) and 8D(2)(iii) of the Rules. Whether the interest amount considered by AO for proportionate disallowance u/r 8D(2)(ii) was corresponding to money borrowed and utilized towards investment in shares - Held that:- the onus is on the assessee to establish that funds utilized in investment in shares yielding exempt income, are not mixed funds and out of its own fund only. The assessee is required to prepare fund flow statement and demonstrate that investment in shares has been made only out of free reserves available. In view of the aforesaid discussion, we feel it appropriate to restore this issue to the file of the Assessing Officer for deciding a fresh after verification as stated above and in accordance with law after providing adequate opportunity of being heard to the assessee. Thus, this ground of appeal is partly allowed for statistical purposes. Taxability of perquisite in the hands of the Director of the company for being allowed possession/use of the assessee’s property at rates lower than the market value - Held that:- CIT(A) has not issued any direction to make addition in the case of directors and only made an observation for need to examine the issue in the hands of the Director. Certainly, the Assessing Officer of the directors of the company will have to examine the issue in accordance with law and for which the affected third-parties will get due opportunity of being heard. The Ld. CIT(A) has though allowed relief to the assessee on the issue in dispute, but has not directed the Assessing Officer of the directors of the assessee company to tax the said amount in their hands and observed a need to examine issue in their hands. Since the Ld. CIT(A) has not concluded on taxability on the issue in hands of the directors or issued directions under-section 150(1) of the Act, it is merely an observation and, thus, in our view, Ld. CIT(A) has not exceeded his authority. - Decided against assessee
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