2019 (6) TMI 440

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..... OME TAX APPEAL NO. 514 OF 2017 - -
Income Tax
AKIL KURESHI & S.J. KATHAWALLA, JJ. Mr. Suresh Kumar for the Appellant Mr. Madhur Agarwal i/by Mr. Atul Jasani for the Respondents   P.C.: 1. These appeals involve the same assessees and involve identical issues. For convenience, we may refer facts from Income Tax Appeal No. 459 of 2017. 2. This appeal is filed by the Revenue to challen .....

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..... s. 7.79 Lakhs (rounded off) of expenditure relatable to activity of earning tax free income. The Assessing Officer rejected such a working out and applied the unamended formula of Rule 8D(ii)(3) of the Income Tax Rules and made a disallowance of Rs. 2.19 Crores (rounded off). CIT(A) restricted the disallowance to the assessee's total claim of expenditure of Rs. 24.19 Lakhs. In further appeal, the .....

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..... ub-section (2) of Section 14 of the Act provides that the Assessing Officer shall determine the amount of expenditure incurred in relation to such income which does not form part of the total income under this Act in accordance with such method as may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied with the correctness of the claim of the as .....

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..... khs out of which, the assessee had voluntarily reduced sum of Rs. 7.79 Lakhs in relation to income not forming part of the total income. The Tribunal accepted such working out. Quite apart the correctness of the approach of the Tribunal, accepting stand of the Assessing Officer would lead to disallowance of expenditure far in excess of what is claimed by the assessee itself. 7. No question of law .....

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