TMI Blog2016 (9) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... the view that the disallowance of ₹ 3,94,711/- made by the assessee appears to be on the lower side. However, since the number of transactions is limited, we are of the view that this issue may be settled by making an estimate on a reasonable basis. Accordingly, we are of the view that, considering the facts and circumstances of the case, the disallowance u/s 14A of the Act may be made at ₹ 10.00 lakhs in order to cover up the expenses relating to utilisation of human/other resources not considered by the assessee. In our considered view, the same would meet the ends of justice and we order accordingly. Accordingly the order passed by Ld CIT(A) stands modified accordingly and the AO is directed to disallow the above said amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme. Accordingly she submitted that the involvement of resources of the assessee in making investments and in receiving dividends were very minimum. Despite these facts, the assessee has voluntarily disallowed a sum of ₹ 3,94,711/- by allocating a portion of administrative and salary expenses on a reasonable basis. The Ld A.R also urged various propositions to contend that no disallowance u/s 14A is warranted in the facts and circumstances of the case. 4. On the contrary, the Ld D.R submitted that the provisions of Rule 8D has been held to be mandatory for the year under consideration by Hon ble Bombay High Court in the case of Godrej Boyce Mfg. Co. Ltd (328 ITR 81). He submitted that the assessee has allocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led below:- Staff Salary 2,54,622 Authorised signatory 1% of CTC 68,656 0.1% of CEO deputation expenses 8,237 Office boy 1% of CTC 1,112 Besides the above, the assessee has allocated a portion of rent and other expenses also. Accordingly the total amount disallowed by the assessee works out to ₹ 3,94,711/-. 7. We notice that the assessing officer has observed that the assessee has not categorised the expenses incurred for making investment from which it has earned exempt income. Accordingly he has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds. Normally such decisions are taken by consulting finance department and investment experts. However, such details are not available on record. 9. In view of the above reasons, it is difficult to accept the workings given by the assessee and we are of the view that the disallowance of ₹ 3,94,711/- made by the assessee appears to be on the lower side. However, since the number of transactions is limited, we are of the view that this issue may be settled by making an estimate on a reasonable basis. Accordingly, we are of the view that, considering the facts and circumstances of the case, the disallowance u/s 14A of the Act may be made at ₹ 10.00 lakhs in order to cover up the expenses relating to utilisation of human ..... X X X X Extracts X X X X X X X X Extracts X X X X
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