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TMI Blog2014 (6) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... cted against the Order by the Commissioner of Income Tax (Appeals)-4, Mumbai ('CIT(A)' for short) dated 06.12.2012, partly allowing the assessee's appeal contesting its assessment u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) for the assessment year (A.Y.) 2008-09 vide order dated 28.12.2011. 2. The only issue arising in the instant appeal is the disallowance u/s.14A, effected by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tomatic or as a matter of course, not involving any investment analysis, research and study of the market, as would normally precede an investment decision in an unrelated party security, entailing thus a much lower level of indirect expenditure. There is also no occasion to infer investment of borrowed funds inasmuch as the same is with a view to build up capital (of the group company) with the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, that no expenditure or a lower expenditure (than that stands to be statutorily estimated per rule 8D) has in fact been incurred, would only be on the assessee. It is only when the assessee fails to do so that the A.O. is enabled to proceed to effect a disallowance u/s.14A, which, it needs to be appreciated, is a statutory disallowance, in terms of r.8D. Reference in this context may be made to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 8D stands prescribed by law. For example, the entire interest expenditure has been treated as indirect, which is improbable inasmuch as businesses normally have dedicated financing for different activities/assets, so that, where so, an inference to the contrary must be preceded by some finding of fact. 3.3 The matter, we may emphasize, is primarily factual, and would stand to be factually det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s may not exceed that effected in the first instance is misplaced in-asmuch as the Revenue has only applied rule 8D; having in fact not made any disallowance qua direct expenditure, so that the disallowance, being statutorily mandated at the prescribed level, cannot exceed the same. We decide accordingly. 5. In the result, the assessee's appeal is allowed for statistical purposes. Order pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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