TMI Blog2016 (7) TMI 1527X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 (8) TMI 77 - BOMBAY HIGH COURT . It was held that Rule 8D applies only prospectively. Therefore, we hold that provisions of Rule 8D have no application for Assessment Year 2007-08. However, reasonable disallowance should be made and we direct the Assessing Officer to restrict the disallowance under section 14A at 2% of the dividend income as reasonable expenses for earning exempt income. This g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Year: 2007-08 And 2008-09) - - - Dated:- 29-7-2016 - Shri B.R. Baskaran And Shri C.N. Prasad, JJ. assessee by: Shri P.J. Pardiwalla Revenue by: Shri Ranadher Gupta ORDER C.N. Prasad, These three appeals are filed by the assessee and the Revenue against the order of the Ld. CIT(A)-4, Mumbai pertaining to assessment years 2007-08 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed the order of the Assessing Officer in applying Rule 8D r.w. section 14A of the Act. 2.3. The Ld. Counsel for the assessee before us contends that since no expenditure had been incurred in relation to exempt income, no disallowance is warranted under Sec. 14A r.w. Rule 8D. The Ld. Counsel for the assessee submits that the Hon ble Bombay High Court in the case of Godrej Boyce Mfg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities below. For the Assessment Year under consideration i.e. Assessment Year 2007-08, the provisions of Rule 8D have no application as held by the Jurisdictional High Court in the case of Godrej Boyce Mfg. Co. It was held that Rule 8D applies only prospectively. Therefore, we hold that provisions of Rule 8D have no application for Assessment Year 2007-08. However, reasonable disallowance should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation claimed on actual cost of the assets as per Sec. 43(1) of the I.T. Act. 6.1. The Ld. Counsel for the assessee submits that the issue has been decided by the Tribunal for the Assessment Year 2008-09 in ITA No. 8324/M/2011 dated 18.5.2016 and pleads that the same may be followed. 6.2. The Ld. Departmental Representative supports the orders of the authorities below. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
