9911796707
TMI Blog2014 (1) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... rala High Court] – The proportionate disallowance under section 14A should be limited to only interest liability and not overheads or administrative expenditure, which should be considered for disallowance under Rule 8D - The issue restored for fresh examination. Disallowance of medical expenses – Held that:- The assessee has claimed that the medical expenses were incurred on its employees - The assessing officer did not examine the said claim of the assessee - The AO had disallowed this expenditure for want of adequate details/explanations - The issue restored for fresh examination. - I.T.A No. 162/Coch/2012 - - - Dated:- 8-2-2013 - Shri N. R. S. Ganesan, JM And B. R. Baskaran, AM,JJ. Shri Vivek C. Govind, CA Smt. Susan Georg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne half percentage of average investment, which worked out to Rs.2,54,452/- and disallowed the same. The Ld CIT(A) confirmed all the three disallowances. Hence, the assessee has filed this appeal before us. 4. We have heard the rival contentions and perused the record. The first issue relates to the disallowance of proportionate amount of franchisee fee claimed during the year under consideration. The assessee had claimed the same under the head "preliminary expenses". The Ld CIT(A) has observed that the said expenditure does not call in the category of preliminary expenses prescribed in sec. 35D of the Act. However, he confirmed the disallowance with the observation that the same is not allowable under any other section. However, the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance of expenses relatable to the exempted income u/s 14A of the Act. The said issue has since been decided by the Hon'ble Kerala High Court in the case of CIT Vs. Dhanalakshmy Bank Ltd (2012)(344 ITR 259)(Ker). Accordingly, this issue requires fresh examination in the light of the above said decision. Accordingly we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO with the direction to examine the issue afresh in the light of the decision of the Hon'ble jurisdictional High Court, referred above. 6. The next issue relates to the disallowance of medical expenses. We notice that the AO disallowed the same with the reasoning that details and explanations given by the assessee were inadequate. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
