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TMI Blog2017 (3) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... Even if there is a different view, the one which is in favour of the assessee deserves to be accepted. Therefore, we hold that the disallowance if any, should not exceed ₹ 2,86,655. Learned Counsel for the Assessee, fairly admitted that if the disallowance is restricted to the exempt income he would not seriously press other grounds. The appeal is accordingly disposed of by restricting the disallowance to ₹ 2,86,655. - Decided partly in favour of assessee. - ITA.No.846/Hyd/2016 - - - Dated:- 28-2-2017 - SHRI D. MANMOHAN, VICE PRESIDENT For The Assessee : Shri K.K. Gupta For The Revenue : Shri A. Sitarama Rao ORDER This appeal by the assessee is directed against the order passed by CIT(A)-2, Hyderabad and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed under Rule 8D of I.T. Rules read with section 14A of the I.T. Act. In response thereto, the assessee submitted that investments were made out of assessee s own funds (reserves). In the absence of details, the A.O. invoked Rule 8D and determined the amount disallowable at ₹ 14,90,799 (under Rule 8D (2)(iii) and ₹ 1,70,205 (under Rule 8D (2)(ii). 3. Aggrieved, assessee contended before the CIT(A) that own funds were utilised for investment in shares and therefore, no disallowance can be made. Ld. CIT(A) accepted the contention of the assessee and observed that the assessee had own funds of ₹ 39,75,46,901 which is more than the investments of ₹ 29,52,35,776 in shares. Therefore, disallowance under Rule 8D(2)(ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the subsidiary issue i.e., administrative expenditure. In the case of M/s. Daga Global Chemicals Pvt. Ltd., (supra), the ITAT, Mumbai Bench observed that disallowance under section 14A read with Rule 8D cannot exceed the exempt income. No other case law was placed before me wherein a different view was taken. Even if there is a different view, the one which is in favour of the assessee deserves to be accepted. I, therefore, follow the decision of the ITAT, Mumbai Bench in the case of M/s. Daga Global Chemicals Pvt. Ltd., (supra) and hold that the disallowance if any, should not exceed ₹ 2,86,655. Learned Counsel for the Assessee, fairly admitted that if the disallowance is restricted to the exempt income he would not seriously press ..... X X X X Extracts X X X X X X X X Extracts X X X X
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