TMI Blog2012 (8) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... with a direction decide the issue afresh in the light of the said judgment after providing reasonable opportunity of being heard to the assessee - in favour of assessee. - ITA No. 1301/Mds/2011 CO No 139/Mds/2011 - - - Dated:- 15-6-2012 - SHRI N.S. SAINI, AND SHRI V. DURGA RAO, JJ. Revenue by : Shri Sanjay Pungalia, JCIT, Assessee by : Shri Sathiyanarayanan, Advocate O R D E R Per V. Durga Rao, JM : This appeal filed by the Revenue and cross objection filed by the assessee are directed against the order passed by the CIT(A)-V, Chennai dated 19.04.2011 for Assessment Year 2007-08. 2. Brief facts of the case are that the assessee is engaged in the marketing of building materials, vehicle sales, governor service, trave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome. Aggrieved, the Revenue carried the matter in appeal before the Tribunal. 4. The ld. counsel for the Revenue submitted that there is no basis for the ld. Commissioner of Income-tax(Appeals) to direct the Assessing Officer to disallow 2% of the dividend income and submitted that the Assessing Officer had disallowed on the basis of facts and circumstances of the case. 5. On the other hand, the ld. counsel for the assessee reiterated the submissions made before the Assessing Officer and strongly supported the order of the ld. Commissioner of Incometax( Appeals). 6. We have heard the rival submissions and perused the orders of the authorities below as well as the material available on record. The only dispute in this appeal is wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure (direct or indirect) in relation to dividend income/income from mutual funds which does not form part of the total income as contemplated under section 14A. The AO can adopt a reasonable basis for effecting the apportionment. While making that determination, the AO should provide a reasonable opportunity to the assessee of producing its accounts and relevant or germane material having a bearing on the facts and circumstances of the case. 7. In view of the ratio laid down by the Hon ble jurisdictional High court in the case of Godrej Boyce Mfg. Co. Ltd. (supra), we remit the matter back to the file of the AO with a direction decide the issue afresh in the light of the said judgment of the Hon ble Jurisdictional High court after ..... X X X X Extracts X X X X X X X X Extracts X X X X
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