TMI Blog2017 (4) TMI 1407X X X X Extracts X X X X X X X X Extracts X X X X ..... mpt income made voluntarily by the assessee under section 14A is reasonable. We have further noted that in the impugned assessment year, the disallowance of expenditure made by the assessee voluntarily under section 14A works out to almost 44% of the total expenditure as compared to 35.10% in assessment year 2009–10. Moreover, the Assessing Officer has not recorded any satisfaction that the disallowance made by the assessee with reference to its books of account is incorrect or unreasonable. Moreover, no distinguishing fact has been brought to our notice by the learned Departmental Representative to deviate from the earlier order. Disallowance under section 14A by the assessee in the computation of income being reasonable should be accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the view that the assessee had not computed disallowance properly with reference to section 14A r/w rule 8D. He observed, while making disallowance under section 14A, the assessee has considered only the investment from which it has earned dividend income, whereas, investments made in the partnership firms were not considered for disallowance. Accordingly, he called upon the assessee to explain why disallowance under section 14A should not be made on investment in the partnership firm as per rule 8D. In response to the query raised by the Assessing Officer, the assessee filed detailed submissions objecting to the disallowance proposed by the Assessing Officer. However, the Assessing Officer rejecting the objections of the assessee proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sentative submitted, suo motu disallowance made by the assessee under section 14A works out to 43.62% of the total expenditure. He submitted, if the disallowance made by the Assessing Officer is to be sustained, then such disallowance would work out to almost 98.89% of the total expenditure which is highly improbable. He, therefore, submitted that the addition made by the Assessing Officer should be deleted. 5. Learned Departmental Representative has filed a written submission supporting the addition made by the Assessing Officer and sustained by the learned Commissioner (Appeals). 6. We have heard the rival contentions and perused the material available on record in the light of the decision relied upon. It is evident the dispute bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Service Charges 26,40,000 18,00,000 8,40,000 8,40,000 5. Freight Transportation Charges 6,80,705 6,80,705 6. Other Trading Expenses 13,74,271 13,74,271 7. Legal Professional Fees 1,06,17,546 (Rs. 38,60,500 has been disallowed in return of income) 1,06,17,546 67,57,046 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. We have further noted that in the impugned assessment year, the disallowance of expenditure made by the assessee voluntarily under section 14A works out to almost 44% of the total expenditure as compared to 35.10% in assessment year 2009 10. Moreover, the Assessing Officer has not recorded any satisfaction that the disallowance made by the assessee with reference to its books of account is incorrect or unreasonable. Moreover, no distinguishing fact has been brought to our notice by the learned Departmental Representative to deviate from the earlier order of the Tribunal in assessee s own case. Therefore, we are of the view that the disallowance under section 14A by the assessee in the computation of income being reasonable should be acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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