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TMI Blog2012 (10) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Liberty India. Dis-allowance u/s 14A - Held that:- It is found from record that no direct expenditure was incurred by the assessee for earning exempt income. Only interest expenditure of Rs. 848/- was shown as indirect expenditure, which was also incurred in respect of vehicle loan availed by employees of the assessee company. Since no expenditure was incurred either directly or indirectly for earning exempt income, no disallowance is warranted u/s 14A - Decided in favor of assessee - I.T.A.No. 51/Ind/2012. - - - Dated:- 12-7-2012 - SHRI JOGINDER SINGH AND SHRI R.C.SHARMA, JJ. Appellant by : Shri R. A. Verma, Sr. DR Respondent by : Shri C.P. Rawka, F.C.A. ORDER PER R. C. SHARMA, A.M. This is an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer. The ld. CIT(A) allowed the same by observing that in assessee s own case, Tribunal have allowed the claim u/s 80-I. 5. From the record, we found that the Tribunal in assessee s own case in I.T.A.No. 784 785 of 2007 for the assessment year 2006-07 and 1007-08 has allowed claim u/s 80I vide order dated 19.6.2009, the Assessing Officer has declined the assessee s claim only on the plea that Department has filed an appeal before the High Court. No finding on merit of disallowance was given by the Assessing Officer. The ld. CIT(A) by following the decision of Tribunal in assessee s own case in earlier years decided in favour of the assessee. The factual matrix of assessee s claim having been allowed in earlier not disputed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,88,19,447/- as well as the LTCG. For this reason, he applied Rule 8D to work out disallowance required to be made u/s 14A. As per the computation given by the Assessing Officer on the body of the assessment order, the amount of expenditure directly relating to such exempt income was Nil; and the common expenditure ( i.e. relatable to taxable and exempt income) by way of interest was Rs. 848/- out of which proportionate disallowance in the manner as prescribed in sub rule (2)(ii) of Rule 8D was worked out at Rs. 547/-. Thereafter in accordance with sub-rule (2)((iii), the amount equal to one half percent of average value of investment was worked out at Rs. 16,26,093/-. On this basis the Assessing Officer made total disallowance of Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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