TMI Blog2016 (1) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... be made only on an estimated basis with regard to the expenditure incurred for the purpose of earning tax free income. Thus we direct the Learned AO to disallow 1% of dividend income under this issue and accordingly, the grounds raised by the assessee are set aside to the file of Learned AO to make addition as directed above. - ITA No. 466/Kol/2013 - - - Dated:- 13-1-2016 - N. Vasudevan (Judicial Member) And M. Balaganesh (Accountant Member) For the Appellant/Assessee : B. K. Ghosh, Pijush Dey For the Respondent/Department : S. S Alam ORDER M. Balaganesh (Accountant Member) This appeal of the assessee arises out of the order of the Learned CIT(A)-VI, Kolkata in Appeal No. 06/CIT(A)-VI/Cir-6/11-12/Kol dated 24-12-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mate including the manner of making estimate of disallowances amounting to ₹ 19,44,035 offered by the appellant bank itself. 2. That, on facts as well as on law, the Learned Commissioner of Income Tax (Appeal) - VI, Kol has erred in directing the Learned Assessing Officer to consider ₹ 1 ,39,49,000, being 0.5% of the tax free investment, as amount disallowable under section 14A. 3. That, on facts as well as on law, the Learned Commissioner of Income Tax (Appeal) - VI, Kol has erred in disregarding the decision of Hon'ble Bombay High Court in the case of Godrej Boyce Manufacturing Company Ltd. [(2010) 328 ITR 81 (Bom)] in which it was held that Rule 80 shall be applicable from assessment year 2008- 09 onwards. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yce Manufacturing Company Ltd reported in 328 ITR 81 (Bom) a nd the same is applicable only from Asst Year 2008-09 onwards. He further argued that this issue is covered by the decision of the Hon ble Jurisdictional High Court in the case of R.R.Sen Bros Pvt Ltd wherein it was held that 1% of exempt income is to be adopted for the purpose of disallowance u/s 14A of the Act. In response to this, the Learned DR vehemently supported the orders of the lower authorities. 5. We have heard the rival submissions and perused the materials available on record. The relevant assessment year under appeal is 2002-03 at which point of time, the provisions of Rule 8D was not in force and the same was made applicable only from Asst Year 2008-09 as de ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
