TMI Blog2015 (6) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... that the observation made by the Bench is peculiar to the facts available to the impugned assessment year and may not be quoted for further reference. This ground of the assessee is partly allowed Ad-hoc disallowance made towards estimated expenses - addition u/s 14A - Held that:- Rule-8D of the Rules can be applied, if the Assessing Officer is not satisfied with the correctness of the claim of the assessee with respect to the expenditure incurred in relation to exempt income. Even if, the assessee claims that no expenditure was incurred in respect to exempt income, the Assessing Officer is supposed to follow the mandate of Rule-8D. Section 14A is called for when the Assessing Officer is not satisfied with the claim of the assessee havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d order. 2.1 I have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is a training institute in advertising for post graduate residential students, declared income of ₹ 1890/- in its return filed on 07/10/2010. The assessee claimed ₹ 10,49,800/- to have been incurred for printing and stationary, telephone and travelling expenses for business purposes. The Assessing Officer suspected the genuineness of these expenditure by holding that there was element of personal use, thus, he made disallowance at the rate of 10% of such expenditure. On appeal, before the ld. Commissioner of Income Tax (Appeals), the disallowance was restricted to 5% of the claimed expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is restricted to 2% against 5% sustained by the ld. Commissioner of Income Tax (Appeals). It is made clear that the observation made by the Bench is peculiar to the facts available to the impugned assessment year and may not be quoted for further reference. This ground of the assessee is partly allowed 3. The next ground pertains to ad-hoc disallowance of ₹ 3,41,763/- made towards estimated expenses, which as per the assessee were not incurred on earning tax free dividend income. The crux of argument advanced on behalf of the assessee is identical to the ground raised by contending that Rule-8D of the Rules cannot ipso-facto, be applied to the facts of the present appeal. The ld. DR defended the addition. 3.1. I have considere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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