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TMI Blog2019 (11) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... BOMBAY HIGH COURT ] etc. Accordingly, the Assessing Officer is directed to pass a speaking order in a time bound manner within the three months from the date of pronouncement of this order after granting a reasonable opportunity of being heard to the assessee. Accordingly, the issue relating to the applicability of the proportions under clause (ii) of Rule 8D(2) of the Rules is allowed for statistical purposes. Applicability of the provisions of clause (iii) of Rule 8D(2) of the Rules - HELD THAT:- Assessee did not have much to argue in this respect except relying on the ground. On perusal of the order of the CIT(A), we find the CIT(A) rightly complied with the provisions of the said clause (iii) of Rule 8D(2) of the Rules. Therefore, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king the provisions of clauses (ii) and (iii) of the said Rule 8D(2) of the Rules. 5. Aggrieved with the said addition made by the Assessing Officer, the assessee filed an appeal before the CIT(A). 6. Regarding the addition made under clause (ii) of Rule 8D(2) of the Rules, the CIT(A) considered the written submission of the assessee and referred to the various judicial pronouncements on this issue which held in favour of the proportionate disallowance of claim of interest. The CIT(A) observed that the accounts of the assessee are maintained on a mixture funds basis and the principle of proportion is required to be applied. Accordingly, the CIT(A) directed the Assessing Officer to examine the working furnished by the assessee and compute th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of proportion , principle of presumption and the Jurisdictional High Court s judgement in the cases of (i) CIT vs. Reliance Utilities Powers Ltd., 313 ITR 340 (Bom.) and (ii) HDFC Bank Ltd. vs. CIT, 383 ITR 529 (Bom.) etc. Accordingly, the Assessing Officer is directed to pass a speaking order in a time bound manner within the three months from the date of pronouncement of this order after granting a reasonable opportunity of being heard to the assessee. Accordingly, the issue relating to the applicability of the proportions under clause (ii) of Rule 8D(2) of the Rules is allowed for statistical purposes. 11. Coming to the second issue on the applicability of the provisions of clause (iii) of Rule 8D(2) of the Rules. 12. Before us, ld. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has given effect to the direction of the CIT(A) by passing a speaking order dated 30.01.2018 which is subsequent to the filing of appeal by the assessee before the Tribunal. The appeal is filed by the assessee on 26.04.2017. Mentioning the relief granted by the Assessing Officer in the modification order dated 17.10.2016, ld. Counsel submitted for not pressing the appeal of the assessee qua the applicability of the provisions of clause (ii) of Rule 8D(2) of the Rules. However, ld. AR further submitted for deleting the addition made by the Assessing Officer invoking the provisions of clause (iii) of Rule 8D(2) of the Rules. 19. On hearing both the sides, we find, in principle, the direction of verification given by the CIT(A) is proper and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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