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TMI Blog2015 (6) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... b rule by the Tribunal. If there is no basis to support the thumb rule applied by the AO or if there is any basis to support the thumb rule applied by the AO then the same rule shall apply to the thumb rule applied by the Tribunal. Mr. Chowdhury, learned advocate appearing on behalf of the appellant/revenue, was unable to show as to how the sum of ₹ 40 lack and odd disallowed by the assessing officer is in accordance with law. When the sum of ₹ 40 lacs and odd was on the basis of a pure guesswork and the learned Tribunal has reduced to a sum of ₹ 20 lacs, it cannot be said that the discretion was exercised unreasonably or illogically. Therefore, the second question is answered in the negative. - ITA 125 of 2007 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but had stated such expenditure to be allowable in accordance with the decision of the Hon ble Calcutta Tribunal in case of DCIT Vs Chloride Industries Ltd. reported in 76 ITD 1. The Ld. CIT(A) also confirmed the disallowance made by the A.O. At the time of hearing, it was brought to the notice of the Bench that this issue had come up before this Tribunal in assessee s own case in I.T.A. No.1781/Kol/2004 for the assessment year 2001-02 and in I.T.A. Nos. 59, 667 788/Kol./2004 for the assessment years 1998 99, 1999 2000 and 2000 01 wherein the Hon ble Tribunal had restored the issue to the file of the A.O. We have heard both the parties and perused the earlier orders of this Tribunal. We find that since the Tribunal had re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase and sale of shares / mutual funds of the above proportionate management expenses amounting to ₹ 41,87,086/- (Rs.311,05,00,000/- ₹ 9982,44,000 x ₹ 13,43,74,967) is being disallowed u/s. 14A. The CIT(A) upheld the order of the assessing officer, but the Tribunal was of the opinion that this issue is squarely covered by various decision of this Tribunal, where it has been held that possibility of direct and indirect expenses in connection with earning of dividend income cannot be ruled out and some percentage of ad hoc disallowance of, expenses had been sustained. By respectfully following the earlier orders of this Tribunal, we are of the opinion that disallowance should be restricted to ₹ 20 lakhs and, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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