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TMI Blog2016 (11) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... with him. See HDFC Bank Ltd. (2014 (8) TMI 119 - BOMBAY HIGH COURT ). As regards to direct expenditure under Rule 8D (1), there is no dispute. As regards to working of disallowance under Rule 8D (3), the assessee has computed the disallowance and the Assessing Officer could not point out any discrepancy or unreasonableness or could not find any fault in the same. Accordingly, we delete the addition and allow the appeal of the assessee retaining the same to the extent of the assessee suo-moto disallowance of sum of ₹ 11,78,104/-.- Decided in favour of assessee. - ITA No.7490/Mum/2013 - - - Dated:- 10-11-2016 - SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM Assessee by : .Ronak Doshi, AR Revenue by : Sivaji Ghote, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount @ 0.50% of Average investment value 76.92.288 Total 1,02,59,209 4. The Assessing Officer noted that assessee has worked out an amount of ₹ 75,84,842/- as expenses attributable earning of exempted income. The assessee subsequently vide letter dated 09-10-2012 revised the working of disallowance relatable to exempt income qua-expenses other than interest on borrowings as under: Expenses other than interest on borrowings: 7. 4. RBCL has incurred a total expense of ₹ 58,361 towards demat and depository charges and this has been considered for the purpose of disallowance. 7.5. In so far as other expenditure is concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 422,341 15% 53,873 3. Mr. Vithoba Patil Sr. Executive-Accounts 309,822 15% 39,990 4. Mr. Laxman Addagatla Executive Accounts 281,913 15% 36,248 Total 317,835 7.7 Apart from the emoluments that are incurred for such personnel, other expenses that can be directly or indirectly attributable to such personnel are also identified based on the total expenses of HO, which are duly alloca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 16,840,073 7.8 Based on the foregoing, the total amount of expenses that may reasonably be considered as incurred in relation to exempt income and which are disallowable under Section 14A of the Act amount to ₹ 11,78,104/- and it comprises of: 1. Demat and depository charges 58,361 2. Emoluments of employees in FMT (See Para 7.3) 317,835 3. Other expenses of Ho Prorated (See Para 7.4) 801,908 Total amount disallowable under section 14A o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the decisions of Hon ble Bombay High Court in the case of CIT(A) Vs. HDFC Bank Ltd. 366 ITR 505 (Bom) (HC). The learned Counsel for the assessee stated that the Assessing Officer could not find any fault in the working of the assessee and without any fault the Assessing Officer has computed his own disallowance. He took us through the order of CIT (A) which is very cryptic and just confirmed the action of the Assessing Officer. 6. We have heard rival contentions and gone through the fact and circumstances of the case. From the above it is clear that no disallowance u/s Rule 8D can be made for the reason that the above facts clearly demonstrated that the assessee is having non-interest bearing funds available in the shape of share capit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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