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TMI Blog2016 (6) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 had deleted the addition on the basis that provisions of section 14A would not be applicable in the case of the assessee as the investment has been made solely for the purpose of having the controlling interest. There is no change into the facts in this year as well. - Decided in favour of assessee Addition on account of expenses claimed against income received from the BCCI - Held that:- We find that ld. CIT (A) has deleted the disallowance merely on the basis of presumption that the assessee might have incurred certain expenditure. In our considered view, this approach of ld. CIT (A) is not justified. Since the assessee himself has claimed certain income earned from other sources and claimed set off of expenditure incurred for earnin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of ₹ 1,35,341/- made by the AO on account of expenses claimed against income received from the BCCI, when no such documentary evidence was filed before the AO. 3. Briefly stated the facts are that in pursuance to the direction of the ld. CIT, the AO framed assessment under section 143(3) of the IT Act, 1961 (hereinafter referred to as the Act) vide order dated 13.12.2010. While framing the assessment, the AO made disallowance of ₹ 44,89,436/- under section 14A of the Act by applying the provisions of Rule 8D of the IT Rules, 1962 (hereinafter referred to as the Rule) and also made disallowance of ₹ 1,35,341/- on account of disallowance of expenditure. The assessee aggrieved by these two disallowances, preferred an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the year under appeal. The ld. Counsel further submitted that even otherwise also the AO has to give a finding in respect of the expenditure claimed by the assessee, but no such finding is given by the AO. He has straight away applied the provisions of Rule 8D. He submitted that satisfaction under section 14A(2) is sine qua non for invoking the provisions of Rule 8D. In the absence of such satisfaction, application of provisions of Rule 8D is not justified. He further submitted that the investment as made by the assessee is for the purpose of having controlling interest in such business entity. He submitted, in case where the investment is made for the purpose of having controlling interest, provisions of section 14A would not be applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made solely for the purpose of having the controlling interest. There is no change into the facts in this year as well. The revenue has not brought to our notice any contrary binding precedent. Moreover, the assessee has dividend income to the tune of ₹ 756/- and the disallowance towards expenditure is made at ₹ 44,89,436/-. In view of above, we do not see any reason to interfere in the order of the ld. CIT (A). The same is hereby upheld. 5. Ground No. 2 is against deletion of ₹ 1,35,341/- made on account of expenses claimed against income received from the BCCI. 5.1. The ld. Senior D/R supported the order of the AO and submitted that before the AO no evidence was furnished in support of the claim of expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that vide order sheet noting dated 30th November, 2010, assessee was required to file ledger of income from Cricket Tour which was filed vide letter dated 13.12.2010. It showed that no expenditure was incurred by the assessee for earning this income. Further, no evidence was filed in support of the deduction so claimed. 5.4. We find that ld. CIT (A) has deleted the disallowance merely on the basis of presumption that the assessee might have incurred certain expenditure. In our considered view, this approach of ld. CIT (A) is not justified. Since the assessee himself has claimed certain income earned from other sources and claimed set off of expenditure incurred for earning such income, it was incumbent upon the assessee to furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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