2017 (11) TMI 1625

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..... f the Ld. Commissioner of Income-Tax (Appeals)16 [CIT(A)], Mumbai, Appeal No.CIT(A)-16/IT-665/ACIT 9(3)(2)/2015-16 dated 17/06/2016. The assessment for impugned AY was framed by Ld. Assistant Commissioner of Income Tax, Central Circle 9(3)(2) u/s 143(3) of the Income Tax Act, 1961 on 29/02/2016. The solitary issue involved in the appeal is disallowance u/s 14A. None has appeared for assessee despi .....

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..... ested the same on various grounds. However, not convinced, Ld. AO, applying Rule 8D, computed the same at Rs. 29,65,268/- which comprised of interest disallowance as per Rule 8D(2)(ii) for Rs. 26,77,816/- and expenses disallowance u/r 8D(2)(iii) @0.5% of average investment, which came to Rs. 2,87,452/-. 3. Aggrieved, the assessee contested the same with partial success before Ld. CIT(A) vide impu .....

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..... n of material, reached a conclusion that own interest free funds far exceeded the investment. Secondly, the strategic investment and investments which yielded no exempt income were to be excluded for the purpose of computation of expenses disallowance. We find the approach to be a quite fair, reasonable & plausible and therefore, find no reason to interfere with the same. 5. Resultantly, revenue' .....

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