TMI Blog2018 (3) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... . Anil Bhalla, AR ORDER PER SUCHITRA KAMBLE This appeal has been filed by the Revenue against the order dated 14/08/2014 passed by CIT(A)-V, New Delhi. 2. The grounds of appeal are as under:- 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the disallowance of ₹ 6,47,21,925/- made by the A.O. u/s 14A in normal computation as well as under special provisions of the Act by ignoring the fact that expenses relatable to earning of exempt income have to be considered for disallowance as per Rule 8D of the l.T. Rules 1962 r.w.s.MA of the Act irrespective whether any exempt income has been earned by the assessee during the year or not. 2. The appellant craves leave for reser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the form of dividend. The sum and substance of the appellant s contention is that the balance of the expenses totaling to ₹ 5,18,810/- has been incurred under three heads i.e. legal professional; statutory audit fee and internal audit fee and that from the breakup of these expenses it is evident that these are not related to earning of the exempt income and therefore cannot be subjected to disallowance in terms of section 14A of the Act. The other argument of the appellant is that in terms of section 14A (2) the AO is mandated to determine the expenses incurred in relation to exempt income in terms of the method prescribed under Rule 8D only if the AO is not satisfied with the correctness of the claim of the assessee, having regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expenditure related to legal Profession charges, auditors remuneration, depreciation and bank charges and rates and taxes are in any wav required to be incurred for the maintenance and running of corporate office and other business of the assessee and cannot be said to be attributable to earning of exempt income . Further in the case of Modern Info Technology Ltd in ITA no 4294/Del/2012 reported in 2012- TIOL-644_ITAT-Del. the Hon ble ITAT has held that disallowance under section 14A cannot exceed the total actual expenditure incurred and claimed by the assessee. Applying the ratio of the above decisions to the facts of the appellant case the appeal is allowed and the excess additions made in terms of Rule 8D for an amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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