TMI Blog2011 (1) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... and AO must adopt a reasonable basis and method consistent with all relevant facts and circumstances. - AO directed to recompute the dis allowance in view of decision of Hon'ble Bombay High Court in the case of Godrej & Boyce (2010 (8) TMI 77 - BOMBAY HIGH COURT) - ITA Nos.4260/Del/2010,3262/Del/2010&3263/Del/2010 - - - Dated:- 12-1-2011 - BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND SHRI I.P.BANSAL, JUDICIAL MEMBER Appellant by : Dr.S.Narayanan, Advocate. Respondent by : Ms.Y.Kakkar and Shri Amrender Kumar, Sr.DRs. ORDER PER I.P.BANSAL, JM : All these appeals are filed by the assessee and they are directed against three separate orders passed by CIT(A) dated 22.6.2010, 15.3.2010 and 29.4.2010 for AY 2005-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Daga Capital Management (supra) wherein it has been held that Rule 8D is retrospective in nature. 5. In the grounds of appeal, as it can be seen, it is the case of the assessee that disallowance made by the AO by relying on Rule 8D is neither legal nor factually right as no expenditure has been incurred by the assessee to earn exempted dividend income. Reference is made to the decision of Hon'ble Punjab Haryana High Court in the case of CIT Vs. Hero Cycles - 323 ITR 518. 6. It is also the case of the assessee that Delhi Tribunal in the case of Minda Investments Ltd. Vs. DCIT vide order dated 13.10.2010 in ITA No.4046/Del/2009 has deleted the disallowance on the ground that neither the AO nor the CIT(A) has rebutted the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... putation of disallowance as directed by Hon'ble Bombay High Court in the case of Godrej Boyce - 234 CTR 1. He has produced before us copies of following orders of the Tribunal wherein the matter has been restored back to the file of the AO :- (i) Order of Delhi Bench 'G' dated 23.12.2010 in the case of Super Auto India Vs. Addl.CIT in ITA No.818/Del/2010. (ii) Order of Delhi Bench 'F' dated 26.10.2010 in the case of Overseas Carpets Ltd. Vs. DCIT in ITA No.1830/Del/2010. 8. He submitted that the Tribunal order upon which the learned AR is placing reliance is dated 13.10.2010 and the orders cited by him are after the order of the said date and he pleaded that even according to rule of precedence, later decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d AO must adopt a reasonable basis and method consistent with all relevant facts and circumstances. Therefore, we direct the AO to recompute the disallowance in accordance with the aforementioned decision of Hon'ble Bombay High Court in the case of Godrej Boyce (supra). Before arriving at any conclusion, AO will give reasonable opportunity of hearing to the assessee to place all germane material on the record. We direct accordingly. 10. Before parting, we may mention here that plea of learned AR that based on decision of the Tribunal in the case of Minda Investments Ltd. (supra), the disallowance should be deleted cannot be accepted as in the later decisions similar matters have been restored to the file of the AO and according to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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