TMI Blog2012 (8) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.6.2011 of the CIT(A)-3, Mumbai for the assessment year 2008-09 disputing the action of ld CIT(A) in deleting disallowance made by the AO u/s.14A r.w. Rule 8D of I.T.Rules amounting to ₹ 15,74,023. 2. The relevant facts are that during the course of assessment proceedings, AO asked assessee to explain as to why section 14A r.w. Rule 8D is not applicable to him. Assessee stated that the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance in a mechanical manner by applying arithmetic formula of rule 8D. It was contended that dividend income is ₹ 7,547 which was also credited through ECS. Ld CIT(A) considered the submissions of assessee and facts of the case and vide para 1.3 of the impugned order, deleted the disallowance made by the AO, which reads as under: I have considered the facts and perused the mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im of expenditure in relation to exempt income and the claim is not correct. It is seen that the assessee has earned dividend of ₹ 7,547 only, which has been directly credited to bank through ECS. The interest of ₹ 58,304 received on PPF, for which a journal entry is passed on 31.3.3008 and similarly, interest of ₹ 81,40,390 on tax free bonds is credited by journal entries passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income and expenditure account and the details of professional expenses claimed and submitted that assessee has not debited any interest expenses in the profit and loss account. It was contended that net professional receipts of the assessee is ₹ 25.37crores and the expenditure claimed is ₹ 7.36 crores and in the professional expenses, there is no claim of interest, which could be attr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim of the assessee in respect of such expenditure in relation to income which does not form part of the total income under the Act. We observe that there is no such finding by AO in assessment order. On the other hand, in the case before us, there is no such claim of the assessee towards expenses in relation to income which does not form part of total income under the Act. Therefore, questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
