2016 (7) TMI 1527

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..... nsideration i.e. Assessment Year 2007-08, the provisions of Rule 8D have no application as held by the Jurisdictional High Court in the case of Godrej Boyce Mfg. Co 2010 (8) TMI 77 - BOMBAY HIGH COURT . It was held that Rule 8D applies only prospectively. Therefore, we hold that provisions of Rule 8D have no application for Assessment Year 2007-08. However, reasonable disallowance should be made a .....

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..... e cost at which they have been acquired i.e. the actual consideration paid by the assessee.
Shri B.R. Baskaran And Shri C.N. Prasad, JJ. assessee by: Shri P.J. Pardiwalla Revenue by: Shri Ranadher Gupta ORDER C.N. Prasad, These three appeals are filed by the assessee and the Revenue against the order of the Ld. CIT(A)-4, Mumbai pertaining to assessment years 2007-08 & 2008-09. ITA No .....

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..... pplying Rule 8D r.w. section 14A of the Act. 2.3. The Ld. Counsel for the assessee before us contends that since no expenditure had been incurred in relation to exempt income, no disallowance is warranted under Sec. 14A r.w. Rule 8D. The Ld. Counsel for the assessee submits that the Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd Vs DCIT., held that Rule 8D is not retrospect .....

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..... Year 2007-08, the provisions of Rule 8D have no application as held by the Jurisdictional High Court in the case of Godrej & Boyce Mfg. Co. It was held that Rule 8D applies only prospectively. Therefore, we hold that provisions of Rule 8D have no application for Assessment Year 2007-08. However, reasonable disallowance should be made and we direct the Assessing Officer to restrict the disallowanc .....

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..... or the assessee submits that the issue has been decided by the Tribunal for the Assessment Year 2008-09 in ITA No. 8324/M/2011 dated 18.5.2016 and pleads that the same may be followed. 6.2. The Ld. Departmental Representative supports the orders of the authorities below. 6.3. On a perusal of the order of the Co-ordinate Bench, we find that the Co-ordinate Bench confirmed the order of the Ld. C .....

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