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TMI Blog2018 (9) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... is represented by Ld. Sr. Counsel, Shri Farrokh V.Irani [Ld. AR] whereas the revenue is represented by Shri B.Srinivas, Ld. CIT-DR & Shri Manoj Kumar Singh, Ld. Sr. DR. So far as the revenue's appeal is concerned, both the representatives converge on the point that the issue arising therein has already been dealt with by this Tribunal in assessee's own case for earlier assessment years 2008-09 to 2011-12, the copies of which has been placed on record. In view of the admitted position, we first take up the issues raised in revenue's appeal ITA No. 7005/Mum/2016 which could be tabulated as follows:- No. Nature of Additions /disallowances Remarks 1. Depreciation on UPS Batteries Restricted to 15% as against 80% claimed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee namely Kotak Mahindra Bank Limited had formulated an ESOP scheme for grant of stock option and as a corollary offered the stocks under the scheme to the employees of the assessee company also. The payment represent differential of market price and the issue price and claimed to be paid by the assessee for the purposes of retention of its employees and a method of remunerating them. However, not convinced, Ld. AO disallowed the same and added the same to the income of the assessee. 2.4 Aggrieved, the assessee contested all the three additions / adjustments with success before Ld. CIT(A) vide impugned order dated 29/09/2016 wherein the depreciation at higher rate as claimed by the assessee was allowed by following the decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er addition of Rs. 1.13 Lacs based on Annual Information Return [AIR]. 4.1 Facts qua disallowance u/s 14A are that the assessee reflected exempt dividend income of Rs. 131.46 Lacs and made a suo-moto disallowance of Rs. 9.35 Lacs against the same in the return of income. The subject matter of the appeal concerns only with quantum of administrative expenditure as per Rule 8D(2)(iii). The assessee defended its computation vide reply dated 18/02/2015, the relevant portion of which has already been extracted in the quantum assessment order. As per the submissions, the investments made by the assessee were strategic in nature and made for long term purpose and therefore, no day-to-day expenses were required to be incurred to manage the same. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not, at all, justified and sustainable. It has further been contended that those investments which have not yielded any exempt income during the impugned AY were required to be excluded for computations in terms of the judgment of Delhi Tribunal (Special Bench) rendered in ACIT Vs. Vireet Investment (P.) Ltd. [82 Taxmann.com 415]. Per Contra, Ld. CIT-DR submitted that the computations were to be made only as per the formula prescribed under the law. 4.4 We have carefully heard the rival contentions and perused relevant material on record including judicial pronouncements as cited before us. So far as the legal issue as raised by Ld. Sr. Counsel is concerned, we find that the issue in hand involves only quantum of administrative expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f computation of disallowance u/s 14A. Drawing analogy from the decision of Hon'ble Supreme Court rendered in Maxopp Investment Ltd. Vs CIT [supra], we also find strength in the plea that the quantum of disallowance could not exceed the exempt income earned by the assessee during the impugned AY. Further, those investments which were not capable of yielding any exempt income were also to be excluded while arriving at the disallowance. 4.7 Keeping the above principles in mind, we have perused the nature of investments held by the assessee which are extracted at Page-14 of the impugned order. We find that the investments have been classified by the assessee as Strategic investments, Stock-in-trade & investment in other Shares / Venture Capit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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