9911796707
TMI Blog2017 (8) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... t "the Act") dated 15.03.2013 for the Assessment Year 2010-11. 2. The only issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in deleting the disallowance made u/s 14A of the Act in the sum of Rs. 39,73,576/- in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee is engaged in the business of investment in shares, debentures, government securities under investment portfolio, dealing with speculation/derivatives in shares, financing, commission agent and merchant and had filed its return of income on 30.10.2010 for the assessment year 2010- 11 declaring total income of Rs. 8,42,27,182/-. The Ld. AO during the course of assessment proceedings observed that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case laws in that regard observed that there is no case for making any disallowance under second limb of Rule 8D(2) towards interest as sufficient own funds were indeed available with the assessee. With regard to third limb , he observed that the assessee herself voluntarily disallowed a sum of Rs. 5 lacs and hence, no further disallowance is called for. Aggrieved, the revenue is in appeal before us on the following grounds: (i) In the facts and circumstances of the case, the Ld. CIT(A) erred in allowing the appeal of the assessee on the ground that the net result of interest/expenditure was positive income & further no head of expenditure was attributable to earning exempt income. (ii) The order is erroneous because the Ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses of Rs. 40,73,576/-. The Ld. AO had not given any satisfaction as to how the said disallowance made by the assessee is incorrect having regard to the accounts of the assessee in terms of Section 14A(2) read with Rule 8D(1) of the Rules. In our considered opinion, without doing the same, the Ld.AO cannot mechanically resort to Rule 8D of the Rules and in the instant case, the disallowance made by the assessee in the sum of Rs. 5 lacs is reasonable having regard to the accounts of the assessee and accordingly, the Ld. CIT(A) had rightly deleted the further disallowance made by the Ld. AO in this regard. Hence, we do not find any infirmity in the order of the Ld. CIT(A) in this regard. Accordingly, the grounds raised by the Revenue are dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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