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TMI Blog2018 (9) TMI 1920X X X X Extracts X X X X X X X X Extracts X X X X ..... atisfaction on the methodology adopted by the assessee. Considering low level of investment activity, the disallowance of ₹ 2.19 lakhs made by the assessee u/s. 14A of the Act would meet the requirements of section 14A of the Act - Accordingly, the order passed by the learned CIT(A) is set aside and the AO directed to accept the disallowance made by the assessee. Charging of interest u/s 234C of the Act - Learned AR submitted that there was error in the assessment order in computing interest u/s. 234C of the Act - HELD THAT:- There should not be any dispute that interest u/s. 234C of the Act has to be computed on the returned income as per mandate of section 234C of the Act, after duly considering the advance tax paid by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les. The Assessing Officer noticed that there is no requirement of makingany disallowance u/r. 8D(2)(i) 8D(2)(ii) of the I.T. Rules. The Assessing Officer computed the disallowance u/r. 8D(2)(iii) out of administrative expenses at the rate of 0.50% of the average value of investmentsand disallowed a sum of ₹ 13.18 lakhs. The learned CIT(A) also confirmed the same. 3.The Learned AR submitted that the assessee has invested its surplus funds in liquid scheme of mutual funds only, which does not require much analysis. He submitted that the dividend income is also either reinvested or received directly into the bank account. Accordingly he submitted that the assessee has not really incurred any expenditure for earning the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue relates to interest charged u/s. 234C of the Act by the Assessing Officer. The Learned AR submitted that interest u/s. 234C of the Act should be computed on the returned income of the assessee and further the advance tax paid by the assessee should be considered while computing the same. The Learned AR submitted that there was error in the assessment order in computing interest u/s. 234C of the Act. 7. We have heard learned DR on this issue. There should not be any dispute that interest u/s. 234C of the Act has to be computed on the returned income as per mandate of section 234C of the Act, after duly considering the advance tax paid by the assessee. According to the Ld A.R, there is mistake in the computation of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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