TMI Blog2015 (10) TMI 1587X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose, the matter is remanded to the file of the Assessing Officer for deciding the disallowance under section 14A after granting reasonable opportunity of being heard to the assessee. Accordingly, ground raised by the assessee is allowed for statistical purposes. - Decided in favour of assessee for statistical purposes. - ITA No. 8142/Mum./2011 - - - Dated:- 22-5-2015 - D Karunakara Rao, AM And Vijay Pal Rao, JM,JJ. For the Appellant : Shri Vijay Mehta For the Respondent : Shri Neil Philip ORDER Per: D Karunakara Rao,AM. The present appeals preferred by the assessee is directed against the impugned order dated 8th September 2011, passed by the learned Commissioner (Appeals)-4, Mumbai, for the assessment year 2008- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther claimed that ₹ 5,000, which are invested in National Saving Certificates have been wrongly included in the opening balance as the certificates were pertaining to the earlier year and the income is also taxable from such certificates. The learned CIT(A), accordingly, directed the Assessing Officer to verify the items which have been wrongly included in the closing and opening balance and recalculate the disallowance on account of administrative expenses to the extent of 0.5% of average investment which the assessee has calculated at ₹ 10,93,779 and restrict the disallowance under section 14A to such recalculated amount. Being aggrieved, the assessee is in further appeal before the Tribunal. 4. Before us, the learned Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of investment and depreciation has to be removed which has nothing to do with the investment in shares. The balance expenses which had been debited, works out to ₹ 17,63,873. From the schedule of investment, it is seen that most of the investment have been made in mutual funds and deposits in the HDFC Ltd. Some of the investment has already been directed by the CIT(A) to be excluded. If the nature of investment and overall indirect expenses is taken into consideration, then it cannot be said that such a huge disallowance of ₹ 26,45,200 is called for as worked out by the A.O. Rule 8D is not a mechanical provision which is to be resorted whenever there is disallowance u/s 14A(1). The same has been subjected to conditions enumerate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rule 8D has been invoked by the A.O. to work out the indirect expenses, without satisfying himself about the assessee's correctness of the claim. In absence of satisfying the mandatory requirement as given in sub-section (2) of section 14A, the disallowance offered by the assessee under rule 14A, cannot be tinkered with and also it appears to be reasonable looking to the overall indirect expenditure incurred by the assessee. 7. From the above, it is evident that an amount of ₹ 2.40 lakhs is found disallowable under section 14A of the Act, for the A.Y. 2009-10. Considering the argument of the learned Counsel for the assessee, similar disallowance can be made in the year under consideration after examining the expenditure cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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