2016 (6) TMI 1474

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..... see against the order dated 17.2.2016 of learned CIT(A)-22, New Delhi, having concurrent jurisdiction of CIT(A), Indore-2. 2. The sum and substance of the grounds of appeal is that the learned CIT(A) was not justified in upholding the addition of Rs. 9,75,979/- u/s 14A of the Act. 3. Briefly stated, the facts of the case are that the assessee himself made a disallowance of Rs. 28,339/- and the d .....

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..... onfirming the illegal action of the Assessing Officer without showing any reasons therefor. The learned counsel for the assessee relied upon the judgment of the Bombay High Court in the case of CIT vs. HDFC Bank; in ITA No. 330/2012 wherein it has been held that if the assessee's own fund and other interest bearing funds were more than the investment in the tax free securities, it would be presume .....

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..... hat the computation or disallowance made by the assessee or claim that no expenditure was incurred to earn exempt income must be examined with reference to the accounts, and only and when the explanation/claim of the assessee is not satisfactory, computation under sub Rule (2) to Rule 8D of the Rules is to be made." Therefore, go on to sub Rule (2) to Rule 8D of the Rules until and unless the Asse .....

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..... r explanation. The second aspect is there appears to have been no scrutiny of the accounts by the AO -an aspect which is completely unnoticed by the CIT (A) and the ITAT. The third, and in the opinion of this court, important anomaly which we cannot be unmindful is that whereas the entire tax exempt income is Rs. 48,90,000/-, the disallowance ultimately directed works out to nearly 110% of that su .....

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..... eal is partly allowed." I, therefore, set aside the orders of the authorities below with the direction to the Assessing Officer to consider the above High Court judgments cited above and decide the issue in view thereof. I order accordingly. 7. In the result, the appeal is allowed for statistical purposes only. Pronounced in open Court on 21st June, 2016.
Case laws, Decisions, Judgements, O .....

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