9911796707
TMI Blog2014 (8) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... ed against order of ld. C.I.T.(A)- VI, Kolkata dated 23.11.2011 and pertains to Assessment year 2008-09. 2. The grounds of appeal in this appeal read as under :- "1. That in the facts and circumstances of the case the learned CIT(Appeal) was wrong in upholding the applicability of Rule 8D of the Income Tax Rule, 1962 contrary to its strict requirement and thereby erred in confirming the action o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the disallowance u/s 14A of the Act as per Rule 8D. AO computed the disallowance at Rs. 1,74,34,539/-. This had two components (i) allocation of expenditure by way of interest - Rs. 1,53,48,915/- (ii) ½% of the average of value of investment - Rs. 20,85,624/-. 4. Against the above order the assessee was in appeal before the ld CIT(A). Before the ld. CIT(A) the assessee submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been disallowed by the assessee itself. The disallowance under section 14A Read with Rule 8D is hereby upheld in addition to the direct expenses in relation to the earning of exempted income, disallowed by the assessee itself. The appeal of the assessee is disallowed." Against the above order assessee is in appeal before us. 5. The ld. Counsel of the assessee submitted that the assessee has suffi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 222 crores and investment made by the assessee were only Rs. 35 crores. The ld. CIT(A) himself accepted that assessee is having sufficient own funds as capital as compared to investments yielding exempt income. In these circumstances we hold that since the assessee has sufficient own capital to make investment for earning exempt income no portion of interest from borrowed capital should be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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