TMI Blog2020 (6) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... which never accrued and hence cannot he brought to tax. Quantification of disallowance u/s 14A - assessee submitted that application of Rule 8D by the AO was bad in law for the reason that proper satisfaction was not recorded by the AO - HELD THAT:- On a query from the bench, the learned counsel for the assessee submitted that he would have no objection, if the issue is set aside to the file of the AO for de novo exercise on the quantification of the disallowance by applying the decision of the CIT(A) in an appeal for the A.Y. 2015-16 order dated 22nd February, 2019, for the reason that a remand report was called for from the Assessing Officer and the Ld. CIT(A) based the disallowance on the remand report. The ld. departmental represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 to the assessment year 2013-14. 2. As the issues arises in both these appeals are common and pertain to the same assessee, for the sake of convenience and they are heard together and disposed of by way of this common order. 3. We have heard rival contentions, considered the papers on record and the orders of the authorities below as well as the case was cited, we held as follows. 4. First we take up the department appeal in ITA No. 1626/Kol/2018 for the assessment year 2012-13. The grounds of appeal are as follows: 1. Whether on the facts and circumstances of the case, the Ld. CIT(A) was justified in directing to re-compute the disallowance under Rule 8D(2)(iii) on the average value those shares which have yielded the exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court upheld this decision of the Tribunal on this issue in ITAT 50 of 2017 and ITAT 10 of 2017 order dated 20th August, 2018 at page 70 para 1, the Hon ble High Court held as follows We do not find any error in law on the part of the Tribunal in its decision on this point. The other question of law suggested by the Revenue was on determination of annual value of certain property of the assessee, being a farm house near New Delhi. The Assessing Officer had undertaken a valuation exercise to come to his conclusion that the rent disclosed by the assessee is much lower than the market value. He has referred to a website www.99acres.com. from which he has referred to higher figures of rent. But this court has consistently held that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance confirmed by the CIT(A) under Rule 8D(2)(iii) is excessive and unreasonable and beyond business expediency. 4. For that further and in event and without prejudice to the grounds, the AO should have examined the actual expenditure incurred in relation to exempted income, along with common attributable expense after excluding specific expense which are related to non-exempted income, prior to applying Rule 8D as such disallowance is excessive unreasonable is required to be reworked. 4. That the appellant craves leave to add, amend, modify, rescind, supplement or alter any of the grounds stated here-in-above either before or at the time of hearing of the appeal. 11. All the grounds of appeal pertain to the sole i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer had restricted the disallowance to ₹ 62.67 lacs. In view of the above discussion all these grounds of appeal are set aside to the file of the AO for fresh adjudication in accordance with law. 12. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No. 1627/Kol/2018 13. Grounds of appeal by the Revenue read as follows: 1. Whether on the facts and circumstances of the case, the Ld. CIT(A) was justified in directing to re-compute the disallowance under Rule 8D(2)(iii) on the average value those shares which have yielded the exempted dividend income notwithstanding the facts that those shares were hold as strategic investment. 2. Whether on the facts and circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cited by disposing of this issue for A.Y. 2012-13. 18. In the result, appeal of the Revenue is dismissed. ITA No. 1667/Kol/2018 19. The sole issue agitated before us, is the disallowance u/s 14A of the Act. As the grounds of appeal are similar to those raised in assessee s appeal for A.Y. 2012-13 and as the facts are identical, consistent with the view taken by us while disposing of the appeal for A.Y. 2012-13 for the very same reason, we set aside this issue to the file of the Assessing Officer with the direction to dispose of the issue by applying our directions on this issue for the A.Y. 2012-13. 20. In the result, the appeal of the assessee is allowed for statistical purposes. 21. Before parting, it is noted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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