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TMI Blog2016 (7) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO and confirmed by the learned CIT (A) in respect to 0.5% of the average value of the investments, we find that none of the authorities below has found fault with the computation made by the assessee in respect to disallowance of 0.5% of average value of the investments. Hence, this being the position and the correctness being not challenged, no further disallowance can be made. - Decided in favour of assessee - ITA No.3604/Mum/2014 - - - Dated:- 16-6-2016 - SRI MAHAVIR SINGH, JM AND SRI RAMIT KOCHAR, AM For The Appellant : Shri Neelkanth Khandelwal, AR For The Respondent : Shri A. Ramachandran, DR ORDE R PER MAHAVIR SINGH, JM: This appeal by the assessee is arising out of the order of the learned CIT (A)-23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 42,391/- and also disallowance under Rule 8D(2) (iii) of the Rules at ₹ 2,95,294/-. But the AO noted that he did not find the working of disallowance acceptable for the reason that the assessee has not made any disallowance of interest expenses under Rule D(2) (ii) of the Rules. Accordingly, he worked out the disallowances as under:- a) Under Rule 8D(2)(i) ₹ 42,391/- b) Under Rule 8D(2)(ii) Rs.56,87,655/- c) Under Rule 8D(2)(iii) ₹ 3,20,601/- Total Rs.60,50,647/-. Aggrieved, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee will have to be worked out as per the method prescribed in Rule 8D(2) (ii) of the I. T. Rules,1962. . . Aggrieved against the action of the learned CIT (A), confirming the order of the AO, the assessee came in second appeal before the Tribunal. 5. We have heard the rival contentions and gone through the facts and circumstances of the case. Before us, the learned Counsel for the assessee filed complete statement of working of expenditure and calculation of disallowance u/s 14A of the Act under Rule 8D (2)(i) and Rule 8D (2) (iii) of the Rules which is as under:- Calculation of disallowance under section 14A 1. Investment in shares Total purchases 54,49,459 Tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of Rule 8D(2) (ii) of the Rules. In this respect, he filed the following details:- Expenditure by way of interest not attributable to any particular income Particulars Amount I Non Interest bearing funds a) Capital amount 2,23,54,176 b) Advance for purchase of shares 1,60,00,000 c) Payable to partnership firm ADD investments 1,80,36,420 Total 5,63,90,596 II I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,391/-. With regard to Rule 8D(2)(ii), the assessee has submitted that her investment in quoted equity shares as at 31.03.2009 is ₹ 2,82,41,048/- and her investments in PPF is ₹ 10,78,858/-. Hence, a total investments were ₹ 2,93,19,906/- as against that she had a capital as at 31.03.2009 of ₹ 2,23,54,176/- advance for purchase of shares from Mr. Deepak Dalal (Husband) of ₹ 1,60,00,000/- and amount payable to partnership firm of ₹ 1,80,36,420/-, totally amounting to ₹ 5,63,90,596/-. It has been submitted by the assessee that considering the above position, there ought not to be any disallowance under Rule 8D(2)(ii) in as much as the capital and non interest bearing funds available with the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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