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TMI Blog2016 (12) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... with the reference to the books of accounts as regards the expenses attributable to exempt income made the additions of ₹ 15,11,000/- apart from the suo motto disallowance by the assessee of ₹ 9,00,907/-. In our opinion the disallowance as made by the assessee is reasonable and justified and no further disallowance without pointing out any defect in working of the assessee of the said disallowance with reference to the books of accounts. Thus set aside the order of the CIT(A) by restricting the disallowance u/s 14A read with rule 8D to ₹ 9,00,907/- as voluntarily made by the assessee and according the appeal of the assessee is allowed. - I.T.A. No.6214/Mum/2011, I.T.A. No.6476/Mum/2012, I.T.A. No.6776/Mum/2012, I.T.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t there was a mistake apparent in the order of Tribunal as the decision / relied upon by the assessee in support of his contention of J K Investors (Bom) Ltd V/s ACIT in Income Tax Appeal No.7858/Mum/2011, dated 13.3.2013 has not been considered by the Tribunal while disposing of the appeal. Accordingly, the Hon ble High court vide order dated 8.3.2016 passed in Income Tax Appeal No.2342 of 2013 has set aside the order of the Tribunal and directed the Tribunal to decide the issue afresh on the basis of facts and law. Hence this appeal before us. So we will take up ITA No.6214/Mum/2011:- 3. The issue raised in various grounds of appeals by the assessee is against the ld.CIT(A) s not appreciating the fact that the provisions of section 14A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The disallowance was made by the AO after finding the disallowance as per section 14A rule 8D of ₹ 1,22,90,682/- to be excessive and more than the actual expenditure of ₹ 24,11,959/- charged to the profit and loss account. 5. Being aggrieved by the order of AO , the assessee preferred an appeal before the First Appellate Authpority who partly allowed the appeal of the assessee by observing and holding as under : 6. I have considered the facts of the case and submissions of the assessee. Undisputedly certain expenses are allocable to the exempt income, these expenses are not directly relatable to either business income or the exempt income in total. Therefore, the disallowance has to be calculated as per Rule 8D only which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Mum./2013(Assessment Year : 2010 11) order dated 22.04.2016, wherein the co-ordinate Bench accepted voluntary disallowance u/s 14A read with rule 8D of the Rules. The Ld AR finally prayed that the order of ld. CIT(A) be set aside and the AO be directed to restrict the disallowance to ₹ 9,00,907 as made by the assessee suo mottu. 7. On the other hand, the ld. DR relied upon the orders of authorities below and requested for upholding the same. 8. We have carefully considered the rival contentions and perused the material placed before us including the orders of authorities below and case / relied upon by the assessee. We find that from the facts before us that the assessee has exempt income of ₹ 13,89,40,620/- which was cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable on record. Undisputed facts are, during the year / under consideration, assessee declared taxable income of ₹ 23,48,56,710/- as against exempt income of ₹ 13,40,30,621. Further, though, the assessee incurred expenditure of ₹ 2,80,52,240, but the assessee itself disallowed expenditure of ₹ 2.48 crore while computing its income as per the statement of total income. Further, in course of assessment proceedings, the assessee, out of the balance expenditure of ₹ 32,52,240, disallowed ₹ 22,69,274 under section 14A read with rule 8D. Thus, the actual expenditure claimed by the assessee for the year under consideration was Rs. ₹ 9,82,966. Therefore, considering the quantum of taxable income and exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8D to ₹ 22,69,274, as voluntarily offered by the assessee in the course of assessment proceedings. Accordingly, while ground raised by the assessee is allowed, the ground raised by the Department is dismissed. / 9. The facts of the assessee case being materially same to decision of the tribunal in the case of sister concern, we respectfully following the order of Co-ordinate Bench of the Tribunal set aside the order of the CIT(A) by restricting the disallowance u/s 14A read with rule 8D to ₹ 9,00,907/- as voluntarily made by the assessee and according the appeal of the assessee is allowed. 10. As regards the other appeals filed by the assessee vide ITA No 6776/Mum/2012 AY 2009-10, ITA No 7137/Mum/2013 AY 2010-11 and IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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