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TMI Blog2020 (10) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) erred in restricting the disallowance u/s.14A made by the AO thereby overlooking the fact that it was correctly worked out as per the method of calculation prescribed in Rule 8D of Income Tax Rules, 1962". 2. "On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in restricting the disallowance u/s.14A with Rule 8D when this method of working of disallowance is held as reasonable method by the jurisdictional High Court in the case of Godrej & Boyce Mfg. Co. Ltd Vs. C1T 328 ITR 81 (Bom.)" 3. "On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in allowing relief to the assessee relying on the decision of Hon'ble Special Bench of ITAT Delhi in the case of Vireet Investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance of Rs. 5,79,943/- while computing the disallowance u/s. 14A of the Act. In the course of the assessment proceedings assessee vide letter dated 30.11.2016 submitted that it had already disallowed direct expenditure related to exempt income as well as proportionate disallowance of expenditure taking exempt income to total income as proportion. It was also submitted by the assessee that the Tribunal in its own case for earlier assessment years restricted the disallowance to the suomoto disallowance made by the assessee. 6. Not convinced with the submissions of the assessee the Assessing Officer computed the disallowance at Rs. 3,45,82,540/- u/s. 14A of the Act r.w. Rule 8D, comprising of direct expenditure of Rs. 41,143/- and administ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make disallowance u/s 14A with Rule 3D. Accordingly, we restrict the disallowance of Rs. 7,21,927/- by reversing the orders of the lower authorities below and thus allow the grounds of appeal taken by assesse. In A.Y. 2009-10, in ITA No. 6780/Mum/2012 dated 3103.2016 On perusal of the above decision of the Tribunal, we agree with the Id. Counsel's argument and remand the matter to the file of the AO. We direct the AO to apply the said ratio to the facts of the present case and other decisions, if any, in force and decide the issue in accordance with law. (Appeal effect given by AO accepting assessee's disallowance vide order dt 30/06/2017) In A.Y. 2010-11, in ITA No. 7135/MUM/2013 dated 22.04.2016 5 - Therefore, consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge nor any factual change therefore, respectfully following judgement of Hon'ble ITAT in appellant's own case for assessment year 2008- 09, 2009-10, 2010-11, 2011-12, 2012-13, AO is directed to work out the disallowance as per the criteria decided by Hon'ble ITAT in appellant's own case in earlier years. Hence, appeal is partly allowed." 7. We also find that for the A.Y. 2013-14 the Tribunal in ITA.No. 3512/Mum/2018 dated 19.07.2019 accepted the claim of the assessee observing as under: - "8. We have considered rival submissions and perused the material on record. Though there is no dispute that during the year under consideration, the assessee had earned both taxable as well as exempt income, however, fact remains, the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the disallowance made by the Assessing Officer could have been sustained. Therefore, following the decisions of the Tribunal and the Hon'ble Jurisdictional High Court in the preceding assessment years, as referred to above, we hold that the disallowance under section 14A r/w rule 8D, should be restricted to the amount already disallowed by the assessee under section 14A of the Act. The grounds raised by the assessee are allowed and those of the Revenue are dismissed. 9. Facts being identical, our aforesaid decision would apply mutatis mutandis to the appeals relating to the other two assessee's which are under consideration in the present order." 8. Further, Hon'ble High Court in Income Tax Appeal No. 459 of 2017 with Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of the claim of expenditure made by the assessee or that the assessee claims that no expenditure has been incurred in relation to income which does not form part of the total income, the Assessing Officer would determine the amount of expenditure in terms of sub-rule (2). For applicability of subrule (2) of Rule 8D, the requirements of sub-rule (1) would have to be satisfied. Only then, the formula provided in the unamended clause would apply. 6. In the present case, as noted, the assessee's entire claim of expenditure in relation to its business activities was Rs. 24.19 Lakhs out of which, the assessee had voluntarily reduced sum of Rs. 7.79 Lakhs in relation to income not forming part of the total income. The Tribunal accepted s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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