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TMI Blog2017 (6) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... opment charges, overseas project expenses were excluded from export turnover, the same shall also be excluded from total turnover. CIT(Appeals) has rightly directed the AO to exclude the same from total turnover. Hence, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Disallowance u/s 14A r.w.r. 8D - mandation of recording satisfaction - HELD THAT:- Whenever the Assessing Officer is not satisfied that the claim made by the assessee towards expenditure for earning the income is not correct, he can recompute the same by applying Rule 8D. This Tribunal is of the considered opinion that computation of expenditure under Rule 8D is mandatory. The method of computat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f expenditure incurred by the assessee in foreign currency towards communication expenses, project travel, software development charges, etc. 4. We have heard Shri S. Balasubramanian, the Ld. Departmental Representative and Sh. R. Vijayaraghavan, the Ld.counsel for the assessee. The CIT(Appeals) directed the Assessing Officer to exclude communication expenses, project cost, software development charges and overseas project expenses incurred in foreign currency from the total turnover since the same were excluded from the export turnover. The CIT(Appeals), in fact, placed his reliance on the decision of this Tribunal in Visteon Technical Services Centre (P) Ltd. v. ACIT (24 taxmann.com 353). We have carefully gone through the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance of ₹ 3,21,68,40,000/- to a closing balance of ₹ 5,17,93,70,000/-. The Assessing Officer further found that the value of asset rose to ₹ 1,84,18,32,000 from ₹ 1,76,96,30,000/-. Therefore, by applying Rule 8D, the Assessing Officer made addition of ₹ 1,71,68,777/- under Section 14A of the Act being the proportionate expenditure for earning the exempted income. The main contention of the assessee before this Tribunal is that no expenditure was incurred for earning dividend income, therefore, there cannot be any disallowance. 7. We have carefully gone through the provisions of Section 14A of the Act and Rule 8D of the Income-tax Rules, 1962. Whenever the Assessing Officer is not satisfied that the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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