9911796707
TMI Blog2018 (1) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... Order u/s. 254(1)of the Income- tax Act, 1961(Act) -Per Rajendra, AM: Challenging the order dtd. 19/08/2016 of the CIT(A)-14A, Mumbai the Assessee has filed the present appeal. Assessee-company, engaged in the business of trading and investment filed its return of income on, 13/09/2012, declaring Loss of Rs. 5. 72 crores. The Assessing Officer(AO) completed the assessment on, 13/03/2015, u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed or variable, managerial or financial. Invoking the provisions of Rule 8D(2)(iii) of the rules, he made a disallowance of Rs. 31. 58 lakhs (Rs. 1, 132-direct expenses (STT)+ Rs. 31. 57 lakhs-0. 5% of average investments). As the assessee had already disallowed Rs. 1, 132 in the competition of income, so, he restricted the disallowance to Rs. 31. 57 lakhs u/s. 14A r. w. r. 8D. 3. Aggrieved by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the head other expenses were not wholly or partly related to earning of exempt income, that there was no evidence that expenditure incurred under the heads legal and professional fees were not linked to earning of exempt income, that the disallowance made by the AO was less than the expenses claimed under the head. Finally, the FAA upheld the order of the AO. 4. During the course of hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee during the year was not related to earning of tax free income. Provisions of section 14A can be invoked only when some expenditure is claimed against the exempt income. As in the case under consideration the AO /FAA had not specified the items of expensed incurred for earning exempt income, so, we are able to persuade ourselves to endorse the views of the FAA. Reversing his order, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
