TMI Blog2013 (10) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) TMI 267 - Delhi High Court]. Further to invoke Rule 8D, the Assessing Officer has to first record a finding that he was not satisfied with the correctness of the claim for expenditure made by the assessee in relation to income, which did not form part of the total income under the Act. No such satisfaction has been recorded by the Assessing Officer. - Decided against the revenue. - Income Tax Appeal No. 439/2013 - - - Dated:- 23-9-2013 - Sanjiv Khanna And Sanjeev Sachdeva,JJ. For the Appellant : Mr. Kamal Sawhney, Sr. Standing Counsel. For the Respondent : Mr. Satyen Sethi, Advocate. ORDER Sanjiv Khanna, J. (Oral):- This appeal by the Revenue, which pertains to Assessment Year 2007-08, raises two issues. The first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,686/- and held this was the reasonable expenditure incurred to earn dividend income of Rs.3,95,439/-. In view of the facts noticed above, the contention of the revenue is rather far-fetched, if not perverse and illogical. 5. Calculation mistakes while applying Rule 8D were pointed out by the respondent-assessee, but these have not been adverted to in view of the findings recorded by the tribunal on merit. Rule 8D is not retrospective as held by this Court in Maxopp Investment Limited v. CIT, (2012) 347 ITR 272 (Del.). Further to invoke Rule 8D, the Assessing Officer has to first record a finding that he was not satisfied with the correctness of the claim for expenditure made by the assessee in relation to income, which did not form part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintenance services in the call centre and back office business operations. After the end of the of the year on the basis of actual consumption of electricity etc, settlement of accounts was drawn up by the agency and agreed to, and thereupon payment of Rs.2,40,85,668/- was made for the whole year after deducting TDS. We fail to understand how and on what basis in view of the said factual finding, the conclusion can be questioned. Similarly, with regard to salary of Rs.1,86,651/-, it is pointed out that salary pertains to this year but was paid in the next year. AMC charges of Rs 10,29,643 relate to this year in question. The Supreme Court decision in Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC) is of relevance and observes:- The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction or even extinction of the liability, would not have the effect of converting that liability into a contingent liability ; (iv) A trader computing his taxable profits for a particular year may properly deduct not only the payments actually made to his employees but also the present value of any payments in respect of their services in that year to be made in a subsequent year if it can be satisfactorily estimated. 9. The factual findings recorded by the tribunal in light of the aforesaid ratio, vindicates the conclusion of the tribunal. 10. In view of the aforesaid discussion, we do not find any reason to interfere with the impugned order. The appeal has no merit and is dismissed in limine. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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