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TMI Blog2019 (4) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) is not correct in law and facts. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law in allowing the appeal of the assessee as the working of disallowance u/s 14A of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for the A.Y. 20010-11 was made by A.O. on the basis of ITAT's order in A.Y. 2006-07. 3. On the facts and circumstances of the case the Ld. CIT(A) has erred in law in deleting the addition of Rs. 67,81,653/- made by the A.O. on account of disallowance u/s 14A read with Rule 8D. 4. The appellant craves leave to add, amend any/all of the grounds of appeal before or during the course of the hearing of the appeal. 2. Briefly stated facts of the case are that the assesseecompany w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deepak Mittal, 361 ITR 131 (P&H), wherein it is held that if the Assessing Officer does not agree with the quantum of disallowance made by the assessee, he must collect the relevant material and evidences to determine the expenditure incurred by the assessee for earning tax income. In view of above, the learned CIT(A) deleted the addition made by the Assessing Officer. Aggrieved, the Revenue is in appeal before the Tribunal, raising the grounds as reproduced above. 3. Before us, the Ld. DR, submitted a list of following decisions of the Hon'ble Courts and Tribunals to support the claim of the Revenue, that disallowance made under Section 14A read with rule 8D of the Rules was made properly by the Assessing Officer: 1 Indiabulls Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atable to interest on investment made in tax free funds, interest expenditure relatable to investment in tax free funds was to be computed under provisions of Rule 8D(2)(ii). 5. Nahar Spinning Mills Ltd. Vs CIT f20171 82 taxmann.com 154 (Punjab & Haryana) where Hon'ble Punjab & Haryana High Court held that disallowance of proportionate administrative expenditure made for earning exempted dividend income computed on reasonable basis would be just (A. Y.2006-07). 6. Dy. CIT v. Virai Profiles Ltd. 156 ITD 72/ 46 ITR 626/ 177 TTJ 466 where Hon'ble ITAT Mumbai held that disallowance of expenditure - Addition on account of disallowance under S. 14A read with Rule 8D being expenditure in relation to earning of exempt income to book profit unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer itself is not correct as while computing the addition in the computation portion of the assessment order, he himself has reduced the disallowance of Rs. 2,72,248/- out of disallowance computed on the basis of Rule 8D. Thus, it is evident that the Assessing Officer has not examined the correctness of the claim of the assessee of expenditure incurred in relation to exempt income. 6. In absence of recording of dissatisfaction on the correctness of the claim of the assessee of expenditure in relation to exempt income, which is a prerequisite for invoking the Rule 8D of the Rules, the Assessing Officer is not justified in making the disallowance under Section 14A of the Act, invoking Rule 8D of the Rules. In view of the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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