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TMI Blog2015 (11) TMI 1712X X X X Extracts X X X X X X X X Extracts X X X X ..... law, Ld. CIT (A) has erred in deleting the disallowance of interest of Rs. 75,93,474/- made by the AO u/s 14A of the Act. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in restricted the disallowance of Rs. 37,58,360/- made by the AO to Rs. 2,65,500/- under Rule 8D(iii) read with Section 14A read with Rule 8D(ii) of the Act/Rules. 3. The appellant craves to leave, to add, or amend any ground of appeal raised above at the time of the hearing." 2. Briefly stated facts are that the assessee is engaged in the business activities in shares and securities during relevant time and for the AY 2010-11 they have filed their return of income on 15.10.2010 declaring the total income as Nil un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. He, therefore, submitted that AO's order may be restored. Per contra, it is the submission of the Ld. AR that Ld. CIT (A) is perfectly justified in deleting the addition calculated under Rule 8D(ii) of the Rules because on facts, he found not only that the own funds of the assessee are far exceeding the investment inasmuch as an amount of Rs. 3.86 crores released on the sale of investment was available with the assessee as against the 1.37 crores of new investments, but the funds borrowed during the year were used for the business of shares and securities. In so far as the Rule 8D(iii) is concerned, it is his submission that Ld. CIT (A) was right in deleting the travelling expenses and apportioning the balance between trading and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th any investment in a particular share/mutual fund etc. and the time when to exit from one investment to another are all the activities requiring well coordinated and well informed management decisions, involving not only inputs from various sources but it also involves acumen of senior management functionaries. We further agree with the reasoning of the Ld. CIT (A) that there are incidental administrative expenses on collecting the information, research, etc. which helps in arriving at particular investment decisions and these expenses, relating to earning of income are embedded in the indirect expenses without which it would not be possible to carry out this herculean task. We, therefore, agree with the authorities below that the expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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