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TMI Blog2017 (9) TMI 1751X X X X Extracts X X X X X X X X Extracts X X X X ..... ch does not need any interference on our part, therefore, we affirm the impugned order on the issue in dispute involved in ground no. 1 and accordingly reject the same. - Decided against revenue. - ITA No. 4277/Del/2015 - - - Dated:- 1-9-2017 - Shri H.S. Sidhu And Shri Prashant Maharishi, JJ. Department by : Sh. Shravan Gotru, Sr. DR Assessee by : S h . R.M. Mehta, CA ORDER H.S. Sidhu, The Revenue has filed the present appeal against the impugned order dated 22/4/2015 passed by the Ld. Commissioner of Income Tax (Appeals)-V, New Delhi on the following grounds:- 1. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 4,15,24,709/- made u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count of income which does not form part of the total income under the Act. The CBDT has notified rule 8D to avoid ad-hoc disallowance to impart visibility to the expenditure incurred for earning exempt income. Moreover, procedure for computation of disallowance has been provided in sub-sections (2) and (3) of section 14A of the I T Act. The ITAT, Special Bench, New Delhi in the case of M/s Cheminvest Ltd. ITA no 87/Del/2008 has also held that the disallowance u/s 14A is to be made even if no income has resulted or earned by the assessee in the year under consideration. Therefore, in view of the specific provisions for quantification of disallowance as contained in sub-sections (2) and (3) of section 14A, which are procedural. The disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 22.4.2015 and deleted the addition of ₹ 4,15,24,709/- made u/s. 14A of the Act. 4. Ld. DR relied upon the order of the AO and reiterated the contentions raised in the grounds of appeal and requested that the appeal of the Revenue may be allowed. 5. Ld. Counsel of the assessee has relied upon the order of the Ld. CIT(A) and stated that Ld. CIT(A) has passed a well reasoned order which does not need any interference, hence, he requested that the appeal of the Revenue may be dismissed. 6. We have heard both the parties and perused the records available on record especially the impugned order. We find that there are 3 limbs of disallowance in Rule 8D(2). 1(i) The direct expenses taken by AO from AY 2010-11 (last A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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