9911796707
TMI Blog2016 (2) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... me in a prudent manner. The claim of the assessee was that no expenditure was incurred for earning exempt income, but once the AO had recorded his satisfaction in terms of sub-section (2), then the disallowance can be made as per Rule 8D(2)(iii). We, accordingly, do not find any reason to interfere with the finding of ld. CIT(A) on this count - Decided against assessee - ITA no. 6643/Del/2013 - - - Dated:- 5-11-2015 - SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE: JUDICIAL MEMBER For The Appellant : Shri Rajesh Mahana Adv. and Shri Manu K. Giri Adv. For The Respondent : Shri T. Vasanthan Sr. DR ORDER PER S.V. MEHROTRA, A.M..: This appeal, preferred by the assessee, is directed against the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year under consideration on investment made by the assessee in previous year. Therefore, provision of section 14A does not applicable in the case of assessee. Copy of account statement of mutual fund is being enclosed. 3. The AO did not agree with the assessee s reply and observed as under: I have considered the submission made by Ld. Counsel but do not agree with the same that no expenditure relating to investment activities have been debited in P L Ale. The details of investment of assessee was called for and according to that. the investment in shares and mutual funds as on 01.04.2007 was ₹ 2,42,50,82X/-. The value as on last day of the previous year is ₹ 2,44,71,202/-. As per balance sheet of Ravina International ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Value of investment on the first day of the previous year: ₹ 2,44,71,202/- (c) Total of the above: ₹ 4,87,22,029/- (d) Average value of investment ₹ 2,43,61,014/- (e) One half percent of the average value of investment: ₹ 1,21,805/- 5. Ld. CIT(A) dismissed the assessee s appeal, inter alia, observing I para 7.2 as under: 7.2. The appellant has also argued that the AO has not recorded his satisfaction before applying the Rule 8D of the IT Rules in the appellant's case. The facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no expenditure had been incurred in earning exempt income was incorrect and such arguments were completely misconceived. The observations have specifically been made in para 7.1 of the assessment order. He clearly observed that though there were no direct expenses shown by the assessee in his books of account exclusively for earning such exempt income, but it cannot be denied that the assessee had been utilizing its administrative as well as managerial machinery for earning the exempt income in a prudent manner. 8. Section 14A(3) reads as under: (3) The provisions of sub-section (2) shall also apply in relation to a case, where an assessee claims that no expenditure has been incurred by him in relation to income which does not f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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