TMI Blog2011 (9) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... g, perverse, illegal and against the provisions of law, liable to be set aside. 2. The ld. CIT(A) erred in deleting the addition of ₹ 68,75,000/- u/s. 14A of the Act. 3. The Ld. CIT(A) erred in law and on the facts of the case in allowing interest on self assessment tax. Grounds in ITA No. 5339/Del./2010: 1. The Ld. CIT(A) erred in deleting the addition of ₹ 68,75,000/- on account of expenditure made u/s. 14A r.w. Rule 8D of the Rules of the I.T. Act. 3. The first issue for consideration, which is common in both the appeals, relates to deleting the addition on account of disallowance made u/s. 14A of the Act. The facts of the case, stated in brief, are that the assessee is a Government of India Undertaking es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and 2007-08. 5. We have heard both the parties. We find that Hon ble Mumbai High Court in the case of Godrej and Boyce Mfg. Co. Pvt. Ltd. (supra) has held that the provisions of Rule 8D of the IT Rules, 1962 are applicable from the assessment year 2008-09. The Hon ble Bombay High Court has also held that the Assessing Officer is duty bound to compute disallowance by applying reasonable method having regard to the facts and circumstances of the case. In the case before us, the ld. CIT(A) has restricted the disallowance on adhoc basis without examining nexus with the exempt income and expenditure incurred. We, therefore, feel it necessary to set aside this matter to the file of Assessing Officer with the direction to examine the issue in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for interest on refund due to excess payment of self-assessment tax. 8. The ld. CIT(A) on consideration of above facts, observed that on perusal of proviso to section 244A(1)(a), it is evident that in case the amount of refund was less than 10% of tax determined in the regular assessment, the interest was not payable if the refund was on account of TDS/TCS or advance tax. However, in case refund was due on account of excess payment of self-assessment tax, such restriction was not applicable. The ld. CIT(A) relying on the decision of Hon ble Madras High Court in the case of CIT vs. Cholamandalam Investment Finance Co. Ltd. (supra) held that the interest u/s. 244A was allowable on refund due on account of payment of excess self asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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