2016 (7) TMI 1241

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..... , AM Challenging the order,dt.11.12.13,of the CIT(A)-38 the assessee has filed the present appeal raising various grounds. However the effective ground of appeal is about confirming the disallowance of Rs. 4.40 lakhs u/s.14A of the Act r.w r. 8D of the Income tax Rules, 1962. Assessee -company, engaged in the business of data dissemination service, filed its return of income on 18.9.2010 declari .....

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..... ved by the order of the AO, assessee preferred an appeal before the First Appellate Authority(FAA). Before him, it was argued that it had made investment into various schemes of mutual funds and had earned dividend income, that the entire investment was made out of own funds,that no interest was paid for any loan to earn exempt income, that there was no investment held as on 31.03.10, that the que .....

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..... ment order, he held that disallowance for common administrative expense was necessary, that the submission of the assessee that after voluntary disallowance made by it, no addition should have been made was not a valid argument, that the Hon'ble Bombay High Court had, in the case of Godrej & Boyce(328ITR81) had held that Rule 8D was applicable for the AY 2008-09 onwards, that assessee had avai .....

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..... e rival submissions and perused the material before us. We find that the AO had made a disallowance of Rs. 7.76 lakhs, that he disallowed an amount of Rs. 4.4lakhs on account of interest payment, that the assessee had made a suo moto disallowance of Rs. 3. 36 lakhs on prorata basis, that while making the disallowance the AO had not mentioned as to why the disallowance made by the assessee, amounti .....

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..... e head administrative/managerial expenditure which is more than the disallowance made by AOi.e. Rs. 2.99 lakhs.Considering the above facts, we are reversing the order of the FAA. Effective Ground of appeal raised by the assessee is decided in its favour. As a result appeal filed by the assessee stands allowed. Order pronounced in the open court on 13th July,2016.
Case laws, Decisions, Judgem .....

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