2010 (11) TMI 479

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..... o examine as to whether a disallowance of Rs.15,26,645/- voluntarily disallowed by the assessee itself in the return of income filed by it, is justified or proper, restore the matter back to the file of the AO for his fresh adjudication after providing reasonable opportunity of being heard to the assessee - Be it stated here that the AO shall not apply the provision of Rule 8D of the Income-tax Ru .....

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..... h sec. 14A of the Income-tax Act, 1961 as against the sum of Rs.15,26,645/- already disallowed by the assessee voluntarily in the return of income filed by the assessee. 2. We have heard both the parties and have carefully gone through the orders of the authorities below. In this case a disallowance of Rs.28,37,906/- being half per cent of average investment as on April 1, 2005, has been disal .....

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..... Manufacturing Co. Ltd. vs. DCIT (2010) dated 12th August, 2010. Thus, Rule 8D of the Income-tax Rules is only applicable from the Assessment Year 2008-09 as held by the Hon'ble Bombay High Court. Therefore, the method of disallowance provided under Rule 8D of the Income-tax Rules, shall not be applicable to the present case which is related to the Assessment Year 2006-07. In the present case, it h .....

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