9911796707
TMI Blog2020 (11) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court vide order [ 2013 (10) TMI 1545 - KARNATAKA HIGH COURT ] It is also not in dispute that against the aforesaid order, an appeal has been filed which is pending before the Supreme Court. Therefore, in the facts and circumstances of the case, we deem it appropriate to direct the Assessing Officer to give effect to his order with regard to the issue involved in the first substantial question of law Disallowance u/s 14A invoking the provisions of Rule 8D(2)(iii) - HELD THAT:- We we find from the order passed by the Tribunal that the submissions made by the Assessing Officer, particularly in the light of the decision of this Court in the case of CANARA BANK [ 2014 (1) TMI 1586 - KARNATAKA HIGH COURT ] and the decision of the Supreme C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction while computing the income under the Income Tax Act? ii. Whether on the facts and in the circumstances of the case, on a true and correct interpretation of the provisions of Section 14A of the Act. The disallowance of ₹ 97,154/- by invoking the provisions of Rule 8D(2)(iii) is justified? 3. Facts leading to filing of this appeal briefly stated are that an order of assessment was passed by the Assessing Officer on 28.03.2013, by which the Assessing Officer disallowed the claim to the extent of ₹ 56,45,810/- being expenditure incurred as fee for minor deviation from the initially sanctioned plan and to bring the actually constructed structure in conformity with the modified plan as per building bye laws of the assessee o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held disallowance of administrative expenses in respect of earning non-taxable income. It is further pointed out that it is the case of the assessee that he has not incurred any direct or administrative expenditure for the purpose of earning non-taxable income. It is also submitted that with respect to disallowance under Section 14A of the Act, the Assessing Officer has to bring the material on record to show that certain expenditure was incurred for earning the exempt income and therefore, when no expenditure was incurred by the assessee in earning the exempt income, no notional administrative expenditure could be disallowed. In this connection, reliance has been placed on the decision of this Court in 'CANARA BANK Vs. ASSISTANT COMMIS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the decision of this Court. Accordingly, the first substantial question of law is answered. Sofar as the second substantial question of law is concerned, we find from the order passed by the Tribunal that the submissions made by the Assessing Officer, particularly in the light of the decision of this Court in the case of CANARA BANK, supra and the decision of the Supreme Court in GODREJ BOYCE MANUFACTURING CO. LTD., supra, have not been considered by the Tribunal. The order passed by the Tribunal as well as the Commissioner of Income Tax (Appeals) insofar as it pertains to the issue involved in the second substantial question of law, is hereby set aside and the matter is remitted to the Assessing Officer to decide the issue involved in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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