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2019 (5) TMI 1054

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..... ; 67,35,894/- as has been calculated hereinabove. A.R. during the course of hearing prayed before the Bench to apply a percentage of 2% to 5% of the said expenses, however, we are not convinced with the arguments of A.R. on this issue. 10% of the said expenses would be reasonable disallowance u/s 14A r.w.r. 8D(2)(iii) in this case. Accordingly, a sum of ₹ 6,73,589/- is sustained by reversing the order of Ld. CIT(A) and AO is directed to delete the remaining disallowance. Appeal of the assessee is partly allowed. - ITA No.275/M/2018 - Dated:- 15-5-2019 - Shri Rajesh Kumar, Accountant Member And Shri Ram Lal Negi, Judicial Member For the Assessee : Shri Neelkanth Khandelwal, A.R. For the Revenue : Shri Chaudhary Arunkumar Singh, D.R. OR .....

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..... culated the disallowance at ₹ 65,87,383/- and after allowing the deduction of suo-moto disallowance of ₹ 64,583/- made a net addition of ₹ 65,22,800/-. 4. In the appellate proceedings, the Ld. CIT(A) partly allowed the appeal of the assessee by working out the disallowance of ₹ 53,95,230/- by taking the proportionate expenses in the ratio of exempt income to total exempt income by observing and holding as under: 4. I have considered the submission made by the appellant and the reasons recorded by the AO. So far as the first ground of appeal is concerned, I find that the issue in hand is covered by the decision of jurisdictional Tribunal in the case of the appellant for A.Y. 2008 - 09. In its decision dated 20/10/2015 .....

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..... trict the disallowance accordingly. Accordingly, the appeal of the appellant is partly allowed. 5. We have heard the rival submissions of both the parties and perused the material on record. We observe that total expenses as claimed in the profit & loss account were ₹ 1,56,74,085/- and after excluding the expenses which were incurred and considered separately and also the suo-moto disallowances out of these expenses , the net expenses comes to ₹ 67,35,894/- as per detail as under: Total Expenses as per Profit & Loss Account = 1,56,74,085/- Particulars of Expanses Amount Brief Details Less: Donation 69,10,000/- Added while computing the total income and considered separately. Less: Depreciation as per Books 14,42.021/- Ad .....

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..... ection 14A of the Act to disallow the said expenses as has been held in the case of Leena Kasbekar vs. ACIT (2017) 85 taxmann.com 82 (Mumbai - Trib). Therefore, under the current facts and circumstances, we are of the view that it would be reasonable if a reasonable disallowance is worked out by applying the percentage on the total expenses of ₹ 67,35,894/- as has been calculated hereinabove. The Ld. A.R. during the course of hearing prayed before the Bench to apply a percentage of 2% to 5% of the said expenses, however, we are not convinced with the arguments of Ld. A.R. on this issue. In the present scenario , we are of the view that 10% of the said expenses would be reasonable disallowance u/s 14A r.w.r. 8D(2)(iii) in this case. Ac .....

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