9911796707
TMI Blog2015 (11) TMI 1787X X X X Extracts X X X X X X X X Extracts X X X X ..... though the AO has made the disallowance by relying on the provisions of section 14A but he did not comply with the conditions as stipulated in section 14A(2). He has not recorded any satisfaction with regard to the incorrectness of claim of the assessee having regard to the accounts of the assessee having no such evidence or material brought to my notice by the ld. D/R which may show that the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M.S. Meena, CIT ORDER P.K. Bansal, This appeal has been filed by the assessee against the order of ld. CIT (A) dated 17.03.2015. The only issue involved in this appeal relates to the disallowance of interest under section 14A amounting to ₹ 6,00,000/-. 2. The brief facts of the case are that the AO noted that the assessee is a private limited co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000/- was made on the same date against the share application money of M/s. Career Point Infosystem Ltd. No shares were allotted against the investment in share application money. The amount of ₹ 1,60,00,000/- was returned back on 28.8.2008. The AO, therefore, worked out the interest @ 9% on the investment made against share application money from 1.4.2008 to 28.8.2008 at ₹ 6,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture in relation to the income which does not form part of the total income. Further, sub-section (3) of section 14A empowers the AO to apply sub-section (2) in a case where the assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income. In this case I noted that even though the AO has made the disallowance by relying on the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not find any whisper whatsoever by the AO or by the ld. D/R that the AO has computed the disallowance by applying Rule 8d. In view of this fact, I am of the view that it is a case where no disallowance can be made. I accordingly set aside the order of ld. CIT (A). 4. In the result, appeal filed by the assessee is allowed. Order pronounced in the open court on 6/11/2015. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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