TMI Blog2014 (6) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... having regard to the common expenditure actually incurred, i.e., on activities yielding taxable income and income which does not form part of the total income under the Act, which would therefore need to be apportioned, and toward which r. 8D stands prescribed by law - Relying upon GODREJ AND BOYCE MFG. CO. LTD. Versus DEPUTY COMMISSIONER OF INCOME-TAX AND ANOTHER [2010 (8) TMI 77 - BOMBAY HIGH COURT] - the matter is to be remitted back to the AO for fresh adjudication –Decided in favour of Assessee. - I.T.A. No. 1882/Mum/2013 - - - Dated:- 17-6-2014 - Shri Sanjay Arora, AM And Dr. S. T. M. Pavalan, JM,JJ. For the Appellant : Shri Kirit R. Kamdar For the Respondent : Shri Pitambar Das ORDER Per Sanjay Arora, A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is also no occasion to infer investment of borrowed funds inasmuch as the same is with a view to build up capital (of the group company) with the available free reserves of the investing company. Further, the Revenue has also not followed the procedure as prescribed u/s. 14A(2). 3.2 In our view, there is some merit in the case of both the parties before us. Expenditure has no direct relationship with the income that may arise on its incurring or from investment, so that estimating the expenditure that stands incurred in relation thereto with reference to income arising there-from is without basis, both on facts as well as in law, even as observed by us during hearing. Reference in this context may be made to the decisions inter alia i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indirect, which is improbable inasmuch as businesses normally have dedicated financing for different activities/assets, so that, where so, an inference to the contrary must be preceded by some finding of fact. 3.3 The matter, we may emphasize, is primarily factual, and would stand to be factually determined; the law in the matter having been explicitly explained by a host of decisions by the hon ble high courts, leading being Godrej Boyce Mfg. Co. Ltd. (supra), and following it, by the tribunal cited supra (also refer: Dy. CIT v. Damani Estates Finance (P.) Ltd. [2013] 25 ITR (Trib) 683 (Mum)). Under the circumstances, we only consider it fit and proper that the matter is restored back to the file of the A.O. to determine the issue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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