TMI Blog2018 (10) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance is arising only out of the fact that Ld. AO has added the value of inventories also while working out the said disallowance. MAXOPP INVESTMENT LTD. VERSUS COMMISSIONER OF INCOME TAX, NEW DELHI AND PRINCIPAL COMMISSIONER OF INCOME TAX-I VS. D.B. CORP LTD. [2018 (3) TMI 805 - SUPREME COURT OF INDIA] followed. No reason to deviate from the stand of lower authorities so far as disallowance u/r 8D(2)(iii) is concerned. The interest disallowance u/r 8D(2)(ii) has already been set aside by FAA to the file of Ld. AO to ascertain the factual matrix of assessee’s submissions that interest expenditure pertained only to wind mill business carried out by the assessee. Since the same is factual in nature and set aside to Ld. AO, we see no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM For The Assessee : Naresh Kumar, Ld.AR For The Revenue : Asghar Zain V.P, Ld. DR ORDER Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [AY] 2009-10 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-8 [CIT(A)], Mumbai, Appeal No.CIT(A)-8/Cir.4/179/2011-12 dated 02/01/2013 by raising the following grounds of appeal:- 1. The Ld. CIT(A) erred on facts and in law in confirming the findings of the Ld. AO that the provisions of Sec 14A are applicable to the facts of the appellant when the AO has not given any finding why the disallowance of ₹ 3,30,594/- made by the appellant suo-moto i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.12,18,970/- 3. Disallowance out of business promotion expenses Rs.63,835/- TOTAL Rs.26,38,716/- 2.2 Facts qua disallowance u/s 14A are that the assessee earned exempt dividend income of ₹ 8.86 Lacs during impugned AY and offered suo-moto disallowance of ₹ 3.30 Lacs against the same while computing its income / loss. However, Ld. AO, applying Rule 8D computed aggregate disallowance of ₹ 16.86 Lacs which comprised-off of interest disallowance of ₹ 11.74 Lacs u/r 8D (2)(ii) expense disallowance of ₹ 5.11 Lacs u/r 8D (2)(iii). After adjusting suo-moto disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttention to the documents placed in the paper book agitated the additions which have been controverted by Ld. Departmental Representative [DR], Shri Asghar Zain. 5.1 We have carefully heard the rival contentions and perused relevant material on record including material placed before us. From the perusal of record, it is observed that the assessee has made suo-moto expense disallowance of ₹ 3,30,594/- u/s 14A read with Rule 8D(2)(iii), being 0.5% of average value of investment in shares [0.5% of average of ₹ 646.96 Lacs 675.41 Lacs]. This being the case, the legal grounds as to applicability of Rule 8D as raised by Ld. AR fails since the assessee, himself, has computed disallowance u/r 8D and there was no questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before us. The perusal of various clauses of the agreement dated 24/06/2008 entered into by the assessee with Neeraj Anil Mutha reveal that the candidate was under no obligation to join the assessee serve for any stipulated period of time. Further, the agreement did not provide for any security / safeguards for the assessee in case the various terms of the agreement were not abided by the candidate at later stage or in case the candidate decided not to join the assessee at a later stage. Therefore, finding no substance in the submissions, the ground stand dismissed. 7. The last addition of ₹ 0.63 Lacs has been made by Ld. AO since the same, in the opinion of Ld. AO, were personal expenditure in nature. The details of the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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