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TMI Blog2012 (2) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Assessing Officer is not, on the basis of objective criteria and after giving the assessee a reasonable opportunity, satisfied with the correctness of the claim of the assessee, he shall have to reject the claim and state the reasons for doing so. Having done so, the Assessing Officer will have to determine the amount of expenditure incurred in relation to income which does not form part of the total income under the Act. He is required to do so on the basis of reasonable and acceptable method of apportionment. Therefore, we restore this issue to the file of Assessing Officer to redetermine the disallowance X X X X Extracts X X X X X X X X Extracts X X X X ..... has sustained the disallowance to the extent of ₹ 12,71,622/- by giving the relief to the assessee of a sum of ₹ 3,30,926/-. The assessee is still aggrieved and has raised various grounds of appeal agitating the aforesaid sustained addition of ₹ 12,71,622/-. 4. At the time of hearing, after narrating the facts, it is the case of the learned AR that learned CIT (A) has committed an error in restricting the disallowance to 10% of the dividend income which is merely on the basis of estimate. He, however, submitted that now jurisdictional High Court in the case of Max Opp Investment Ltd. vs. CIT 203 Taxman 364 (Del), has held that for pre-Rule 8D period, whenever the issue of Section 14A arises before an Assessing Officer, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore an Assessing Officer, he has, first of all, to ascertain the correctness of the claim of the assessee in respect of the expenditure incurred in relation to income which does not form part of the total income under the Act. Even where the assessee claims that no expenditure has been incurred in relation to income which does not form part of the total income, the Assessing Officer will have to verify the correctness of such claim. In case the Assessing Officer is satisfied with the claim of the assessee with regard to the expenditure or no expenditure, as the case may be, the Assessing Officer is to ascertain the claim of the assessee in so far as the quantum of disallowance under Section 14A is concerned. In such eventuality, the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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