9911796707
TMI Blog2014 (7) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... 23.2.2011 is against the order of the CIT (A)-7, Mumbai dated 16.11.2010 for the assessment year 2006-2007. 2. In this appeal, assessee raised the following grounds which read as under: "1. On the facts and in the circumstances of the case and in law, the CIT (A) erred in confirming the disallowance under section 14A of Rs. 5,36,442/- as against Rs. 2,11,842/- calculated by the Tax Auditor in T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 14A of the Act, only those expenses, which are directly incurred for earning exempt income, can be disallowed." 3. Briefly stated relevant facts of the case are that the assessee filed the return of income and the AO concluded the assessment determining the assessed income at Rs. 37,88,22,700/- against the returned income of Rs. 36,94,77,900/-. AO made disallowance of Rs. 5,36,442/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A), assessee is in appeal before the Tribunal by raising the above mentioned grounds. 5. At the outset, Shri Bhadresh Doshi, Ld Counsel for the assessee mentioned that the only issue emanating from the above grounds is the disallowance of u/s 14A made by the AO and confirmed by the CIT (A). In this regard, Ld Counsel brought our attention to the judgment of the Hon'ble Bombay High Court in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Godrej & Boyce Mfg. Co. Ltd. Vs. DCIT, reported in (2010) 328 ITR 81(Bom). The Hon'ble Bombay High Court also in the case of CIT vs. M/s. Godrej Agrovet Ltd vide Income Tax Appeal No. 934 of 2011, dated 8.1.2013, has held that percentage of the exempt income can constitute a reasonable estimate for making disallowance in the years earlier to the assessment year 2008-09. The relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Considering the binding nature of the judgment, we are of the opinion that the disallowance made by the assessee at Rs. 2,11,842/- is in accordance with the said judgment of the Hon'ble jurisdictional High Court in the case of M/s. Godrej Agrovet (supra) which is more than 2% and therefore, no addition is call for. Moreover, being the AY under consideration 2006-07, the judgment in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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