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TMI Blog2020 (9) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal was admitted on 04.06.2019 with the following Substantial Question of Law: ''Whether on the facts and in the circumstances of the case, the Tribunal was right in restricting the amount of disallowance made under Section 14A read with Rule 8D to the extent o exempt income earned during the assessment year especially when the Statute does not provide for any such restriction and the assessing officer is bound to apply the provision of section 14A read with Rule 8D?'' 2. We have elaborately heard Ms.R.Hemalatha, learned Senior Standing counsel for the appellant / Revenue and Mr.R.Sivaraman, learned counsel for the respondent / assessee. The Tribunal considered the correctness of the order passed by the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividend income declared by the assessee. In fact the tribunal records that the revenue could not controvert the findings rendered by the High Court of Delhi in the case of Joint Investments Private Limited Vs. CIT, reported in (2015) 372 ITR 0694 (Del). 5. It is relevant to point out that in the said decision the Division Bench of the Delhi High Court referred the decision in the case of Commissioner of Income Tax VI Vs. Taikisha Engineering India Limited [ITA No.115/2014 decided on 25.11.2014] 6. Further, the Bombay High Court in the case of Godrej & Boyce Manufacturing Company Limited, Mumbai Vs. Deputy Commissioner of Income Tax, reported in (2010) 328 ITR 0081, has elaborated the procedure to be followed by the Assessing Officer unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 'prescribed' in s. 2(33), must be prescribed by rules made under the Act. What merits emphasis is that the jurisdiction of the AO to determine the expenditure incurred in relation to such income which does not form part of the total income, in accordance with the prescribed method, arises if the AO is not satisfied with the correctness of the claim of the assessee in respect of the expenditure which the assessee claims to have incurred in relation to income which does not form part of the total income. Moreover, the satisfaction of the AO has to be arrived at, having regard to the accounts of the assessee. Hence, sub-s. (2) does not ipso facto enable the AO to apply the method prescribed by the rules straightaway without con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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