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TMI Blog2012 (6) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent. ORDER G.D. Agrawal, Vice-President - This appeal by the assessee is filed against the order of learned CIT(A)-VIII, New Delhi dated 4th November, 2011 for the AY 2008-09. 2. The grounds raised by the assessee read as under:- "1. That the learned CIT(A) has erred in law and on facts in failing to restrict the disallowance u/s 14A read with rule 8D to Rs. 1,78,83,842 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit & loss account is only Rs. 49,04,028/- while the Assessing Officer disallowed Rs. 2,37,59,757/-. That apart from dividend income, the assessee has other income to the extent of Rs. 97,04,935/-. Therefore, part of the total expenditure incurred by the assessee is certainly attributable to earning of other income. However, even if it is presumed that the entire expenditure was incurred for earni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the sides and perused the material placed before us. Section 14A reads as under:- "Expenditure incurred in relation to income not includible in total income. 14A. [(1) For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either to reassess under section 147 or pass an order enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee under section 154, for any assessment year beginning on or before the 1st day of April, 2001.]" 6. From the above, it is evident that as per sub-section (1) of Section 14A, no deduction is to be allowed in respect of expenditure inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed by the assessee. We, therefore, accept the assessee's contention that the disallowance made by the Assessing Officer and sustained by the learned CIT(A) in excess of total expenditure debited to profit & loss account was unjustified. Accordingly, we restrict the disallowance to the extent of expenditure actually claimed by the assessee i.e. Rs. 49,04,028/-. 7. In the result, the appeal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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