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TMI Blog2014 (3) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... than, JJ. For the Appellant : Shri S.M Surana, Advocate, ld.AR For the Respondent: Shri Ashok Kr.Dey, ld. DR ORDER PER BENCH; This is an appeal filed by the assessee against order of the learned Commissioner of Income-tax (Appeals)-Central-II, Kolkata in appeal no.201/CC-XIII/CIT(A)-C-II/KOL/09-10 dated 16-09-2010 for the assessment year 2007-08. 2. In this assessee s appeal, the assessee has raised following grounds of appeal :- I. For that the order of the Ld. CIT (A) is arbitrary, illegal and bad in law. 2. For that the Ld. C.I.T(A) erred in disallowing Rs.4,76,950/- from interest paid u/s. 14A thereby enhancing the addition from interest disallowed by the AO at Rs. 276189/- ignor1ng the explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer had held that amount of Rs.5,345/- was directly relating to the dividend income. It was the further submission that the Assessing Officer had disallowed an amount of Rs.1,67,560/- out of interest paid by invoking the provisions of section 14A r.w.r 8D of the I.T Rules 1962. It was the submissions that no portion of interest paid was in any way directly attributable to the earning of dividend income. It was the further submissions that interest paid was directly attributable to the business of the assessee. It was submitted that no interest bearing fund had been used for making any investment from which the assessee had derived the dividend income. 5. It was the submission that on appeal before the learned Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to the exempt income was expenditure incurred by the assessee in relation to . It was the submissions that the assessee had not incurred any expenditure in relation to earning of the exempt income. As the assessee did have adequate interest free funds being more than the average value of investment, which had given the assessee the dividend income, it was the submissions that if at all disallowance was called for, the same should be restricted to Rs. 5345/-, being the expenditure directly relatable to the dividend income. 6. In reply, the learned CIT/DR has vehemently supported the orders of the Assessing Officer and the learned Commissioner of Income-tax (Appeals). 7. We have considered the rival submissions. A perusal of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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