TMI Blog2016 (12) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... .A. No. 949/DEL/2012 - - - Dated:- 14-12-2016 - Shri H. S. Sidhu, Judicial Member And Shri O. P. Kant, Accountant Member Assessee by : Sh. B.K. Anand, CA Department by : S h . S.K. Jain, Sr. DR ORDER Per H. S. Sidhu : JM Assessee has filed this Appeal against the impugned Order dated 22.12.2011 passed by the Ld. CIT(A)-XXVIII, New Delhi relevant to assessment year 2008-09 on the following grounds:- 1. That on the facts and in the circumstances of the case the Ld. CIT(A) erred in confirming the disallowance u/s. 14A of ₹ 14,56,385/- as against ₹ 50,040/- computed by the assessee as expenses related to earning of income on which tax is not payable. 2. That the order of the authorities below holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal receipts of ₹ 12.37 crores as against ₹ 10.19 crores last year. In this case, before the AO the assessee contended that it had added back amount of ₹ 50,400/- from the expenses claimed as non-deductible expenditure incurred by the assessee in relation to income which does not form part of the total income as provided u/s. 14A of the Act. AO observed that assessee has not provided any details of cost incurred as fee paid to mutual fund agents/ portfolio managers. AO observed that the assessee has made investments for earning exempt income throughout the year. Managing such a large portfolio entail expenses right from diversion of manpower / staff for indulging in investment activities to various activities like visitin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te is not sustainable as at no stage have said the authorities found any dissatisfaction as regards the correctness of the claim made by the assessee. He requested that the addition in dispute may be deleted and the Appeal of the Assessee may be allowed. In support of his contention, he relied upon the case law in the case of CIT vs. Taikisha Engineering Ltd. (Delhi High Court) ITA No. 115/2014 119/2014 dated 25.11.2014. 6. On the other hand, Ld. DR relied upon the orders of the authorities below. 7. We have heard both the parties and perused the records available with me especially the orders of the revenue authorities. We find that disallowance made u/s. 14A of the Act of ₹ 14,56,385/- was against ₹ 50,400/- computed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the AO is required to examine whether the assessee has incurred expenditure by way of interest in the previous year and secondly whether the interest paid was directly attributable to particular income or receipt - the amount to be disallowed as expenditure relatable to exempt income, under sub Rule (2) is the aggregate of the amount under clause (i), clause (ii) and clause (iii) - Clause (i) relates to direct expenditure relating to income forming part of the total income and under clause (iii) an amount equal to 0.5% of the average amount of value of investment, appearing in the balance sheet on the first day and the last day of the assessee has to be disallowed - thus, the order of the Tribunal is upheld - Decided against revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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