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TMI Blog2019 (7) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer dated 16.02.2015. The Revenue appeal was stated to be disposed. 2. When the matter was called for hearing the Ld. AR for the assessee pointed out that the Revenue's appeal before the ITA against the order of the CIT(A) was dismissed by the Tribunal owning to low tax effect by applying CBDT Circular No. 21/2015 dated 10.12.2015. It was thus submitted that only cross objection of the assessee remains to be decided. Addressing the cross objection, the Ld. AR for the assessee submitted that assessee is aggrieved by the order of the CIT(A) for retaining disallowance of Rs. 10,81,692/- out of total disallowance of Rs. 25,06,920/- carried out by the AO under s. 14A of the Act. The Ld. AR for the assessee pointed out that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AR also referred to the financial statements as annexed with the Paper Book to submit that the expenditure reflected in the accounts actually relates to the manufacturing and trading activity in fine chemicals. The Ld. AR thus submitted that the estimation as per formula prescribed should not be resorted to and some fact and reasonable estimate should be made. 3. The Ld. DR relied upon the order of the AO and submitted that in view of the statutory formula for estimation of disallowance as prescribed under Rule 8D(2)(iii), the Revenue was justified in estimate the quantum of disallowance with which no invariance is called for. 4. We have carefully considered the rival submissions and perused the material available on record. The solitary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee that mutual funds investment bears different traits and is a different species of investment. The mutual funds are supervised by the experts in the field and management charges for such supervision is recovered from the clients. This being so, an investor in the mutual fund separately pays administrative and managerial expenses unlike a case where assessee chooses to make investment in shares directly. In the case of a mutual funds, administrative and managerial expenses are factored in the investments itself. In such a scenario, the explanation offered by the assessee of no expenditure incurred appears to be in congruity with the market practice. Accordingly, we do not find it a fit case for resorting to double disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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