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TMI Blog2018 (10) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... prejudice to above, the learned AO has erred in law and on facts in considering the professional charges paid to consultants and auditors as Indirect Administrative charges for the purpose of making the disallowance under section 14A of the Act. 2. Disallowance under section 14A of the Act under section 115JB of the Act (MAT provisions) It appears from the record that the name of the assessee has been changed from Sheba Properties Limited to Tata Motors Finance Limited. However, the Ld. Auhtorized Representative for assessee [AR] failed to point out the same. No revised Form No. 36 has been filed to reflect the afore-said change. Be that as the case may be, we proceed to disposeoff the same as argued before us. 2. The assessment for i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred to earn the exempt dividend income. The assessee, in the alternative, offered disallowance of Rs. 2.79 Lacs. However, not convinced, Ld. AO, applying Rule 8D, worked out expense disallowance u/r 8D(2)(iii) as Rs. 58.61 Lacs, being 0.5% of average investments held by the assessee during impugned AY. The said disallowance was made while arriving at the normal income as well as while computing Book Profits for the purpose of MAT u/s 115JB. 4. Aggrieved, the assessee reiterated the contentions with partial success before Ld. first appellate authority vide impugned order dated 31/05/2016 wherein Ld. CIT(A), relying upon the order of its predecessors for earlier years, held that the disallowance could not exceed the administrative expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indirect administrative expenditure and includible for the purpose of computation of disallowance u/r 8D since it could not be said that these charges were exclusively incurred for the Truck Business of the assessee. We order so. 6. The Ld. AR has also raised a plea that total of these expenditure, being incurred for a business as a whole, could not be disallowed in toto rather the same was to be apportioned in the ratio of exempt income visà- vis taxable income as held by the Tribunal in AY 2009-10. We find strength in this plea of Ld. AR since the expenditure under question was not exclusively incurred to earn the exempt income. As submitted by Ld. AR, the proportion of exempt income in total income reflected in the Profit & Loss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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