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TMI Blog2015 (12) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... , ld. DR. At the outset, the ld. counsel for the assessee did not press ground no.2 (ITA NO.6680/Mum/2013) with respect to disallowance of Rs. 2,03,162/- under the head share issue expenses. The ld. DR had no objection, therefore, this ground is dismissed as not pressed. 2.1. With respect to rejection of claim of assessee u/s 14A(2) read with Rule 8D of the Income Tax Rules. It was contended by the ld. counsel that for A.Y. 2008-09, identically, the issue was remanded back to the file of ld. Assessing Officer as no borrowed funds were used by the assessee. The ld. counsel placed on record copy of the order of the Tribunal dated 23/11/2012 (ITA No.8187/Mum /2011). It was prayed that since the issue and facts are identical, both these appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration. The AO invoked the provisions of sec.14A r.w rule 8D of the Act, and calculated the disallowable expenditure at Rs. 14,06,325.00 , and added to the income of the assessee . 5. The assessee carried the matter before the CIT[A] but without any success. The CIT[A] confirmed the disallowable expenditure as calculated by the AO on the ground that such disallowance is supported by the decision of the Honb'le High Court of Bombay in the case of Godrej & Boyce 328 ITR 81 . 6. Assessee is aggrieved by this finding of the CIT[A] and is before us. The counsel for the assessee submitted that the order of the CIT[A] is against the facts of the case and provisions of sec.14A[2] . The counsel argued that the AO grossly erred in not accepting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this Act." 9. As the assessee has given a calculation of disallowable expenditure during the course of the assessment proceedings itself which the AO ought to have considered before proceeding further and the same has also not been accepted by the CIT[A] , we have no hesitation to hold that both the lower authorities have erred . 10. In the interest of justice and fair play, we restore this issue back to the files of the AO . The AO is directed to consider the calculation of the assessee for disallowable expenditure in the light of the facts of the case. The AO is also directed to verify the investments vis-a-vis borrowed funds, whether the assessee has incurred any finance cost, after giving areasonable opportunity of being heard ..... X X X X Extracts X X X X X X X X Extracts X X X X
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