TMI Blog2017 (2) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 13-2-2017 - SHRI H.S.SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Appellant : Sh. A K Saroha CIT DR For The Respondent : Shri Rohit Jain Adv, Ms Deepashreerao CA ORDER PER PRASHANT MAHARISHI, A. M. 01. This appeal is preferred by revenue against the order of Ld. Commissioner of Income Tax (Appeals) VII, New Delhi dated 14/11/2013 in case of assessee for assessment year 2005 06. In this appeal the revenue has raised following grounds of appeal:- 1) whether on the facts and circumstances of the case and in law, the Ld. CIT (A) erred in deleting the addition of ₹ 123227834/ out of disallowance of ₹ 123427834/ made by the AO under section 14 A read with rule 8D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of ₹ 123427834/ was made under section 14 A read with rule 8D. 04. Aggrieved by the order of the Ld. AO assessee preferred an appeal before the Ld. CIT A, who by order dated 14/11/2013 deleted the disallowance under section 14 A of the income tax act relying on the decision of the Hon ble Delhi High Court in case of Max of investments limited. Revenue aggrieved by the order of the Ld. CIT A has preferred an appeal before us. 05. The Ld. departmental representative relied upon the order of the Ld. assessing officer and held that rule 8D is also applicable prior to assessment year 2008 09. He further stated that in spite of this estimated amount of disallowance should have been made by the assessing officer and therefore th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve seen, stipulates that the Assessing Officer shall determine the amount of expenditure incurred in relation to income which does not form part of the total income in accordance with such method as may be prescribed . Of course, this determination can only be undertaken if the Assessing Officer is not satisfied with the correctness of the claim of the assessee in respect of such expenditure. This part of section 14A(2) which explicitly requires the fulfilment of a condition precedent is also implicit in section 14A(1) (as it now stands) as also in its initial avatar as section 14A. It is only the prescription with regard to the method of determining such expenditure which is new and which will operate prospectively. In other words, sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -taxable has, in principle, been now widened under section 14A. So, even for the pre-rule 8D period, whenever the issue of section 14A arises before an Assessing Officer, he has, first of all, to ascertain the correctness of the claim of the assessee in respect of the expenditure incurred in relation to income which does not form part of the total income under the said Act. Even where the assessee claims that no expenditure has been incurred in relation to income which does not form part of total income, the Assessing Officer will have to verify the correctness of such claim. In case, the Assessing Officer is satisfied with the claim of the asses see with regard to the expenditure or no expenditure, as the case may be, the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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