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National Venture Fund For Software & Information Technology Industry Versus Income Tax Officer, Mumbai

2016 (1) TMI 35 - ITAT MUMBAI

Disallowance under section 14A r/w rule 8D - Held that:- As could be seen during the assessment proceedings, the assessee also furnished a working computing the disallowance under section 14A r/w rule 8D, which worked out to ₹ 18,45,336. The Assessing Officer, in fact, has accepted the disallowance under rule 8D computed by the assessee. Therefore, from the aforesaid facts, it is very much clear that the maximum disallowance which could have been made under section 14A r/w rule 8D, was to .....

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r play and justice. That being the case, we delete the addition of ₹ 18,45,336, made by the Assessing Officer under section 14A r/w rule 8D. - Decided in favour of assessee - ITA No. 6257/Mum/2013 - Dated:- 30-9-2015 - Rajendra, AM And Saktijit Dey, JM For the Appellant : Shri Vivek Butra For the Respondent : Shri Milin Dattani ORDER Per Saktijit Dey, JM The aforesaid appeal of the assessee is directed against the order dated 5th August 2015, passed by the learned Commissioner (Appeals)-IV .....

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proceedings, the Assessing Officer, while verifying the Profit & Loss account, noticed that the assessee has earned income by way of dividend amounting to ₹ 35,72,428, during the relevant previous year which is exempt under section 10(34) of the Act. However, the assessee has failed to make disallowance of expenditure as required under section 14A of the Act. He, therefore, called upon the assessee to furnish a working showing disallowance under section 14A r/w rule 8D. As observed by .....

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ration, the assessee has incurred total expenditure of ₹ 3,11,29,227, out of which an amount of ₹ 2,49,45,390, was disallowed by the assessee itself on a pro-rata basis by applying the provision of section 14A of the Act and the assessee claimed expenditure only to the tune of ₹ 61,83,838. He, therefore, submitted that further disallowance of ₹ 18,95,141 by applying rule 8D over and above the disallowance already made by the assessee is not justified. The assessee also ra .....

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the assessee on pro-rata basis. 5. Reiterating the stand taken before the Departmental authorities, the learned Counsel for the assessee submitted before us that the assessee having voluntarily disallowed an amount of ₹ 2,49,45,390 under section 14A of the Act, further disallowance over and above the said amount is not only unreasonable but without justification. The learned Counsel for the assessee, referring to the working of suo-motu disallowance made by the assessee submitted in the p .....

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As it transpires from the order of the learned Commissioner (Appeals), the assessee had made investment of ₹ 37,31,76,398, as on 31st March 2009 and ₹ 38,48,79,898, as on 31st March 2010, in shares which has resulted in dividend income to the assessee to the tune of ₹ 35,72,428. Though the Assessing Officer in the assessment order has not mentioned anything about the pro-rata disallowance made by the assessee under section 14A of the Act, but, the learned Commissioner (Appeals .....

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