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TMI Blog2015 (3) TMI 1260X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 3. Grounds taken in ITA No.202/Mum/2013 are as under :- "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in restricting the disallowance u/r 8D(2)(iii) as against Rs. 2,14,85,474/- made by the AO relying on its decision in assessee's own case for A.Y 2008-09 without appreciating the fact that the relief allowed by him in A.Y. 2008-09 is on the disallowance made by the AO u/r 8D(2)(ii), whereas the disallowance made during the year is u/r 8D(2)(iii)." 4. We have gone through the orders of the authorities below and found that while disallowing the expenses u/s.14A, the AO observed as under :- "4.4 The assessee admits that apart from the interest above there are certain administrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Company Ltd .. vs. DClT and made the disallowance in the mechanical manner without assigning any reasons for said disallowance except stating that the same has to bf:: done in accordance to provisions of section 14A read with Rule 8D(2)(iii) of IT.Rules. 4.6 I find that during the year appellant company got amalgamated to group companies which are investment company of the appellant company group. Consequent to Bombay High Court decision dated 617/2010 wherein the amalgamation of both the companies were approved by Bombay High Court w.e.f.01/04/2008. The aforesaid amalgamation resulted in increase of the investment of the appellant company as on 31/3/2009 the year ending of the accounting year relevant to the A.Y.-09-10 which is subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kh only. Accordingly the addition made by the AO is restricted to the extent of Rs. 10 lakhs. Thus the addition made by the AO to this extent is confirmed. Thus the appellant's this ground of appeal is partly allowed." 6. Ld. DR relied on the order of AO and contended that the AO was justified in applying Rule 8D. 7. On the other hand, ld. AR drew our attention to the fact that most of the investment was made in the group companies, therefore, no administrative other expenditure was incurred for maintaining those investment. 8. We have considered rival contentions and carefully gone through the orders of the authorities below and found from the record that assessee itself has made a suo motu disallowance of Rs. 1 lakh under Rule 8D( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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