TMI Blog2012 (11) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... s directed against the order of the CIT[A]-18 Mumbai dated 29.07.2011 pertaining to the assessment year 2008 -09 . 2. The assessee has shown its grievance by raising two grounds of appeal.By Ground No.1 , the assessee has challenged the correctness of the orders of the lower authorities who ought to have considered the disallowable expenditure as computed by the assessee as per the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act, and calculated the disallowable expenditure at ₹ 14,06,325.00 , and added to the income of the assessee . 5. The assessee carried the matter before the CIT[A] but without any success. The CIT[A] confirmed the disallowable expenditure as calculated by the AO on the ground that such disallowance is supported by the decision of the Honb le High Court of Bombay in the case of Godre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and also the 3 pages paper book submitted by the Counsel before us. The undisputed fact is that the assessee has earned dividend income which it claimed to be exempt from tax. It is also not in dispute that proportionate expenses are to be disallowed for earning exempt income as per the provisions of sec.14A r.w rule 8D of the Act. However, at the same time it is incumbent upon the AO to first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding further and the same has also not been accepted by the CIT[A] , we have no hesitation to hold that both the lower authorities have erred . 10. In the interest of justice and fair play, we restore this issue back to the files of the AO . The AO is directed to consider the calculation of the assessee for disallowable expenditure in the light of the facts of the case. The AO is also directed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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