TMI Blog2014 (4) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... determining the amount of expenditure in relation to exempt income, if, the AO is not satisfied with the correctness of the claim made by the assessee in respect of such expenditure. A perusal of the assessment order reveals that the AO without recording any dissatisfaction with regard to the claim of the assessee that no expenditure was incurred by the assessee for earning the exempt income, straightway applied Rule 8D against the mandate of the provisions of section 14A - CIT(A) also ignored the contentions raised by the assessee while confirming the disallowance. We restore this issue back to the file of the AO with a direction that the AO will examine the contentions of the assessee made in this regard. AO will be at liberty to ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investments of Rs.19.43 Crores for earning exempt income. He therefore made a disallowance u/s.14A of the Income Tax Act, 1961 (the Act) read with Rule 8D of the Income Tax Rules, 1962 (the Rules) which was worked out at Rs.29,84,949/- 4. In appeal before the CIT(A), the ld. AR of the assessee submitted that the assessee had not incurred any expenditure for making investments to earn the dividend income and further that the AO had not given any finding for rejecting the assessee s claim that no disallowance was required u/s.14A. 5. However the ld. CIT(A) held that the provisions of section 14A had rightly been invoked by the AO. He therefore confirmed the disallowance so made by the AO. Aggrieved against the order of the CIT(A), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so ignored the contentions raised by the assessee while confirming the disallowance. 8. So keeping in view of the overall facts and circumstances of the case, we restore this issue back to the file of the AO with a direction that the AO will examine the contentions of the assessee made in this regard. The AO will be at liberty to call for any record/evidences or statement etc. from the assessee as may be required by him for deciding the issue under consideration. After going through the details provided by the assessee, if the AO will be satisfied with the contentions or working, if any, made by the assessee then he will assess the income accordingly. However, if the AO does not agree with the computation made by the assessee and in that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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