9911796707
TMI Blog2022 (1) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case. 3. Brief facts of the case on this issue are that the assessee had earned dividend income to the tune of Rs. 1,57,61,357/-, which was exempt from tax. The AO noted that the assessee had made SUO MOTO disallowance to the tune of Rs. 16,32,210/-. The AO after giving an opportunity to the assessee was of the opinion that the disallowance u/s.14A read with Rule 8D is applicable in the facts of the case and has computed the disallowance at Rs. 87,84,059/- (Rs. 1,04,16,269/- - Rs. 16,32,210/-). Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) who was pleased to partly allow the appeal of the assessee but didn't hold that Rule 8D(2)(ii) was not applicable in the case of the assessee. Not satisfied by the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets in Kishn Co.) = Rs. 1014981173 So, the resultant figure of AxB/C = Rs. 88,40,333/-. (iii)............" 5. According to the Ld. AR, the assessee's investment in earning the dividend income is from interest free source meaning that assessee had its own fund for investment for earning the exempt income. Therefore, according to him, Rule 8D(2)(ii) will not be applicable in the facts of the assessee's case. For that he drew our attention to the fact that the assessee had credit balance in capital account to the tune of Rs. 75,87,14,540/- at the beginning of the year as against which he held investment in various forms to the tune of Rs. 36,90,93,546/-. And at the end of the year as on 31.03.2013, the assessee's capital Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . And the assessee had made SUO MOTO disallowance to the tune of Rs. 16,32,210/- for earning of this exempt income. The AO noted that assessee had interest expenditure to the tune of Rs. 2,99,02,007/- and was not maintaining separate books/accounts, so the AO inferred that borrowed funds might have been utilized by the assessee for earning exempt income, so he INTER-ALIA applied Rule 8D(2)(ii) of the Rules, and made disallowance to the tune of Rs. 88,40,333/- which action has been upheld by the Ld. CIT(A). According to assessee the assessee's investment in earning the dividend income is from interest free source meaning that assessee had its own fund for investment for earning the exempt income. Therefore, according to assessee, Rule 8D ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
