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TMI Blog2016 (1) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, are for the same assessment year, and were heard together, as a matter of convenience, we are disposing of these appeals and the cross objection by this consolidated order. 2. We will first take up the appeal filed by the assessee, i.e. ITA No. 2950/Ahd/11. 3. In the first ground of appeal, the assessee is aggrieved of learned CIT(A) upholding the disallowance under section 14A r.w.r. 8D, to the extent of Rs. 6,85,687. 4. So far as this grievance is concerned, only a few material facts are required to be taken note of. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has earned dividend income of Rs. 5,01,148 but has not offered any disallowance of expenses under section 14A. The Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of PCIT Vs India Gelatine & Chemicals Ltd (TA Nos 276 and 277 of 2015; judgment dated 27th April 2015), no part of the interest can be disallowed by invoking section 14A. The disallowance even under rule 8D must therefore remain restricted to the amount worked out under rule 8D(2)(iii), 0.5% of the average value of investments appearing in the balance sheet as on 31.3.2007 and 31.3.2008, which works out to Rs. 26,951. We, therefore, restrict the disallowance to Rs. 26,951 and delete the remaining disallowance. The assessee gets the relief accordingly. 7. Ground no. 1 is thus party allowed in the terms indicated above. 8. In ground no. 2, the assessee is aggrieved of learned CIT(A) sustaining the disallowance in respect of motor car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while accepting that it is a covered issue, relied upon the stand taken by the authorities below. We, however, see no reasons to take any other view of the matter than the view so taken by the coordinate bench. Respectfully following the same, we uphold the grievance of the assessee and delete the impugned disallowance of Rs. 12,77,058. 13. Ground no. 3 is thus allowed. 14. In the result, the appeal filed by the assessee is partly allowed as indicated above. 15. As regards the appeal filed by the Assessing Officer, we have noted that the disallowances, which were deleted by the CIT(A) and which are impugned in this appeal, are Rs. 8,39,214 and Rs. 34,914. The tax effect involved is thus clearly less than Rs. 10,00,000. In terms of the CB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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