TMI Blog2018 (12) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... y and proper Disallowance made by the Assessing Officer by simply invoking clause (ii) to Rule 8D without recording any satisfaction in terms of Section 14A would not be in accordance with and as per the terms of the statute. - decided in favour of assessee. - ITA 818/2018 - - - Dated:- 30-11-2018 - MR. SANJIV KHANNA AND MR. ANUP JAIRAM BHAMBHANI JJ. Appellant Through Mr. Ruchir Bhatia, Advocate. Respondent Through Nemo. O R D E R By order dated 1st August, 2018, the appellant-Revenue was directed to place on record copy of the profit and loss account and balance sheet within a period of four weeks. The appellant-Revenue was granted further time of six weeks vide order dated 14th September, 2018. 2. As per offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of following case laws - (i) Dhanuka Sons vs. CIT 339 ITR 0319 Calcutta (2011), wherein the Hon ble High Court held that disallowance of in expenditure in relating to exempt income u/s 10(34) is justified u/s 14A. (ii) CIT vs. Smt Leena Ramchandran 339 ITR 0296 (2011), wherein Hon ble Kerala High Court held that expenditure in relation to income not forming part of total income is justifiably disallowed. (iii) Punjab State Cooperation Federation Ltd. vs. CIT 336 ITR 0495 (2011), in this case Hon ble Punjab and Haryana High Court held that expense incurred by the assessee for earing income which does not form part of total income under the Act shall not be allowable expenditure. Disallowance required to be made u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losses set off Rs.27558956/- Total NIL Carried forward loss 2007-08 Rs.177095668/- Carried forward loss 2009-10 Rs.156988484/- Allow credit for prepaid taxes. Charge interest as applicable under section 234B. Issue demand notice and challans. 4. The assessment order is silent and does not examine and discuss the relevant facts relating to disallowance under Section 14A of the Income Tax Act, 1961 ('Act' for short). The order proceeds to compute disallowance under clause (ii) of Rule 8D of the Income Tax Rules, 1962 without recording necessar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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