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TMI Blog2015 (1) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (2) of Sec. 14A does not enable the AO to apply the method prescribed by Rule 8D without determining in the first instance the correctness of the claim of the assessee in respect of expenditure incurred in relation to income which does not form part of the total income under the Act, that he can proceed to make a determination under the Rules. Taking a leaf out of these observations o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iya, AM: This is an appeal by the assessee preferred against the order of the Ld. CIT(A)-1, Mumbai dt.07.02.2013 pertaining to A.Y.2009-10. 2. The assessee has raised two substantial grounds of appeal. Ground No. 1 relates to the disallowance made u/s. 14A r.w. Rule 8D. 3. The assessee is a non-banking finance company engaged in the business of financing. The return for the year was selected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Ld. CIT(A) but without any success. 5. Before us, the Ld. Counsel for the assessee stated that the assessee has suo-motu disallowed ₹ 17,15,000/- and the AO has not pointed out any error or defect in the disallowance made by the assessee. Without recording any dissatisfaction in respect of the claim made by the assessee, the AO erred in computing the disallowance as per Rule 8D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to verify the correctness of the claim of the assessee and decide the issue afresh as per provisions of the law. Ground No. 1 is allowed for statistical purpose. 8. Ground No. 2 relates to the denial of the deduction of suo-motu disallowance made by the assessee out of the total disallowance computed by the AO. 9. As we restored the issue of computing the disallowance to the file of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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