TMI Blog2015 (7) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... re claimed stands debited in the assessee’s accounts, which could be inquired in to as to their purpose. For all we know, the assessee may be managing his investments in instruments yielding tax exempt incomes, which are at a healthy sum of ₹ 21.71 cr., i.e., on an average for the year, on his own, or could also be assisted by personnel, who stand remunerated. No inquiry in this regard stands made, while the assessee has maintained proper accounts, duly audited and, further, bases his claim of having incurred a lower expenditure than that per the statutory prescription of r. 8D, thereon. - The ingredients of s. 14A(2) r/w r. 8D(1) are clearly not satisfied in the instant case. We, accordingly find no infirmity in the assessee’s claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Boyce Mfg. Co. Ltd. v. Dy. CIT [2010] 328 ITR 81 (Bom) and Asst. CIT v. Citicorp Finance (India) Ltd. [2007] 108 ITD 457 (Mum), forms the subject matter of appeal before us, or the principal ground/s thereof. 3.1 Before us, the assessee s sole charge was of the Revenue authorities having invoked and applied rule 8D mechanically, i.e., without regard to the quantum and the nature of administrative expenditure qua which disallowance has been made in terms of r.8D(2)(iii). The A.O. had in fact not recorded his dissatisfaction with the assessee s claim for the disallowance, as made suo motu, so that he could rather have not proceeded to make the same in view of section 14A(2). On being enquired as to the basis of the assessee s disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of estimating such expenditure, and which is in fact for both direct and indirect expenditure, even as the disallowance in the instant case is only toward indirect administrative expenditure, covered u/r. 8D(2)(iii). 4. We have heard the parties, and perused the material on record. We are wholly unimpressed with the assessee s argument supporting his working of the expenditure relatable to income not forming part of total income under the Act on the ground that mind is his principal asset. So be it; every economic activity, particularly in today s extremely competitive environment, entails some degree of cerebral activity. There is, however, no corresponding expenditure, or claim in its respect, while the issue at hand is the apport ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
