TMI Blog2016 (1) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... .2007 and 31.3.2008, which works out to ₹ 26,951 as no part of the interest can be disallowed by invoking section 14A. We, therefore, restrict the disallowance to ₹ 26,951 and delete the remaining disallowance. Disallowance in respect of motor car expenses and depreciation - Held that:- This issue is now covered, in the case of assessee’s group Aflon Alplast Pvt Ltd for the same assessment year and in respect of similarly worded orders of the authorities below, in favour of the assessee Disallowance under section 40A(2)(b) - interest payment to the specified persons @ 24% pa, is excessive and unreasonable - Held that:- This issue is now covered, in the case of assessee’s group Aflon Alplast Pvt Ltd for the same assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made fresh investments in the mutual funds amounting to ₹ 51.16 lakhs and shares worth ₹ 2.7 lakhs, that the assessee has claimed various expenses, including interest, and that it is not possible to determine the amount of such expenditure in relation to earning of such tax exempt income . The Assessing Officer did note the assessee s submission that no expenses were incurred in earning the dividend income and the investments in mutual funds and shares were made out of the sale realization of mutual funds sold during the year, but proceeded to compute the disallowance on the basis of rule 8D, which worked out to ₹ 6,85,687. Aggrieved, assessee carried the matter in appeal before the CIT(A) but without any success. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35,830 and depreciation of ₹ 2,21,304. 9. Learned representatives fairly agree that this issue is now covered, in the case of assessee s group Aflon Alplast Pvt Ltd for the same assessment year and in respect of similarly worded orders of the authorities below, in favour of the assessee. A copy of this order dated 30th January 2015 was also placed before us. Learned Departmental Representative, even 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 disallowances of motor car exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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