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TMI Blog2018 (12) TMI 1651X X X X Extracts X X X X X X X X Extracts X X X X ..... ure specifically incurred for taking care of investment in the accounts. It has not claimed any expenditure for taking care of investment, i. e. salary of a particular employee etc. , then how AO can calculate the amount for disallowance. Apart from above, assessee itself has added back a sum of ₹ 6 lakhs on adhoc basis, which can take care of all possible expenditure attributable for earning tax-free towards administrative expenses. Therefore, considering all these details coupled with the finding of CIT(A), we are of the view that there is no merit in the first fold of contention raised by the Revenue. Adjustment in the book profit on the basis of disallowance made u/s. 14A once we have upheld the order of CIT(A) deleting th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act ). ( ii) The Ld. CIT(A) has erred in excluding the amount of ₹ 85, 37, 514/- included by the Assessing Officer in the book profit for the purpose of section 115JB of the Act. 3. The brief facts of the case are that the assessee has filed its return of income on 29/09/2012 declaring total income at ₹ 2, 66, 33, 320/- and book profit at ₹ 13, 84, 13, 847/-. The return was processed u/s. 143(1) of the Act. The case was selected for scrutiny assessment and notice u/s. 143(2) of the Act was issued and served upon the assessee. 4. On scrutiny of the accounts, it revealed to the Assessing Officer that assessee has dividend income of ₹ 63, 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rores. He also pointed out that assessee had shown interest expenses of ₹ 10. 99 crores as against interest income of ₹ 20. 99 crores. Thus, according to ld. counsel for the assessee, there was net interest income of ₹ 10 crores. Hence, no interest expenditure can be disallowed u/s. 14A of the Act. For buttressing this proposition, he put reliance upon the judgement of Hon ble Gujarat High Court in Tax Appeal No. 409 of 2017 in the case of Nirma Credit Capital Pvt. Ltd. reported in 85 taxman. com 72. 7. With regard to administrative expenditure required to be disallowed, he took us through Page No. 29 of the paper-book where notes on financial statements forming part of audited accounts are being placed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, as per sub-clause(2) to Section 14A of the Act, he could not make disallowance out of interest expenditure. It is also pertinent to observe that assessee has huge interest-free funds available which can take care of investment made by the assessee. As far as the disallowance required for the purpose of administrative expenses is concerned, we find that assessee has not debited any expenditure specifically incurred for taking care of investment in the accounts. It has not claimed any expenditure for taking care of investment, i. e. salary of a particular employee etc. , then how Assessing Officer can calculate the amount for disallowance. Apart from above, assessee itself has added back a sum of ₹ 6 lakhs on adhoc basis, which can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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