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TMI Blog2013 (9) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... present case finding on this aspect, against the revenue, is not shown to be perverse. Consequently, disallowance is not permissible – Decided against the Revenue. - I.T.A. No.109 of 2013 (O&M), I.T.A. No.110 of 2013 (O&M), I.T.A. No.108 of 2013 (O&M), I.T.A. No.105 of 2013 (O&M), I.T.A. No.107 of 2013 (O&M), I.T.A. No.106 of 2013 (O&M) - - - Dated:- 3-9-2013 - Rajive Bhalla And Dr. Bharat Bhushan Parsoon,JJ. For the Petitioner : Mr. Vivek Sethi, Advocate JUDGMENT Dr. Bharat Bhushan Parsoon, J. These six appeals under Section 260-A of the Income Tax Act, 1961 (for short, the Act) for the assessment years 2007-08, 2008-09 and 2009-10 of two assessees viz. Deepak Mittal and Amrit Sagar Mittal are directed against the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance under Section 14-A of the Act read with Rule 8-D of the Income Tax Rules, 1962 (hereinafter mentioned as the Rules). In the appeal preferred by the assessee, Commissioner of Income Tax (Appeals) deleted the addition on the ground that the Assessing Officer was not justified in making the disallowance. In further appeal preferred by the revenue, the Tribunal dismissed the revenue appeal primarily by relying upon the decision of this Court dated 4.11.2009 in ITA No.331 of 2009 Commissioner of Income Tax-II Versus M/s Hero Cycles Limited. 5. Sole ground taken by the revenue in these appeals is that the dividend income returned by the assessee could not have been earned by him without making direct or indirect expenses. Contention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll also apply in relation to a case where an assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under this Act. Provided that nothing contained in this section shall empower the Assessing Officer either to reassess under section 147 or pass an order enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee under section 154, for any assessment year beginning on or before the 1st day of April, 2001. 8. Perusal of the aforesaid Section leaves no manner of doubt that plea of the revenue that onus was upon the assessee to prove quantum of expenditure incurred on earning of tax free income of dividend, is corre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsertion of Rule 8-D or thereafter this fact has to be brought on record by the authorities below which in the present case has not been done. x x x Having not incurred any expenditure which can be disallowed or any such expenses having not been brought on record, there cannot be any disallowance of any expenditure under Rule 8-D or otherwise against the exempt income. Our view finds support from the decision in the case of Hero Cycles Limited and Walfort Share Stock Brokers (P) Ltd. (supra). In the circumstances and facts of the case, we find no infirmity in the findings of ld. CIT(A). Thus, ground No.2 of Revenue is dismissed. 11. At this stage, reference may be made to decision of this Court dated 4.11.2009 in ITA No.331 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re has been incurred, disallowance under Section 14A cannot stand. In the present case finding on this aspect, against the revenue, is not shown to be perverse. Consequently, disallowance is not permissible. We have taken this view earlier also in ITA No. 504 of 2008 (Commissioner of Income Tax Chandigarh II vs. M/s Winsome Textile Industries Limited, Chandigarh), decided on 25.8.2009, wherein it was observed as under:- 6. Contention raised on behalf of the revenue is that even if the assessee had made investment in shares out of its own funds, the assessee had taken loans on which interest was paid and all the money available with the assessee was in common kitty, as held by this Court in CIT v. Abhishek Industries Limited, (2006) 286 I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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