9911796707
TMI Blog2015 (2) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... e revenue field and the same has been incurred wholly and exclusively for the purpose of business. The change in the accounting system is not violative of any regulations issued by regulatory authorities in this regard. Furthermore change in accounting policy is bonafide and in line with the industry practice. In earlier years the assessee witnessed many times either the clients exited from the scheme or they switched to the other scheme. The same has necessitated the assessee to change their accounting practice and the assessee followed the same in all the subsequent years. It was also brought to our notice that no disallowance was made in next year while framing assessment u/s 143(3) of the Act. Accordingly, we do not see any justificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A.R. brought to our notice distinguishing feature to the effect that strategic investment was made by the assessee during the year which should not be taken into account while computing disallowance under Rule 8D(2)(iii). It was submitted by the ld. A.R. that all the investments, income from which is exempt, made by the assessee company are in the schemes of HDFC Mutual Fund. These investments made in the various schemes of HDFC Mutual Fund are usually made out of business policy and the same does not require complex analysis by technical experts and does not involve or requires any incurrence of expenditure. Hence, these investments should not be considered in working out disallowance under Rule 8D. Reliance was placed on the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred in the revenue field and the same has been incurred wholly and exclusively for the purpose of business. The change in the accounting system is not violative of any regulations issued by regulatory authorities in this regard. Furthermore change in accounting policy is bonafide and in line with the industry practice. In earlier years the assessee witnessed many times either the clients exited from the scheme or they switched to the other scheme. The same has necessitated the assessee to change their accounting practice and the assessee followed the same in all the subsequent years. It was also brought to our notice that no disallowance was made in next year while framing assessment u/s 143(3) of the Act. Accordingly, we do not see an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his as business loss, which is in the revenue field. The Tribunal has allowed the claim of assesse by treating the above expenditure as business loss. 13. As an alternate, it was submitted that the impugned expenditure is capital in nature, necessary direction may please be given to the AO to allow depreciation on the same. 14. We have considered the rival contentions and found that, no doubt the expenses were actually incurred by the assessee. However, the same was disallowed on the plea that it was capital in nature. Looking to the fact that the premises were not occupied at all, therefore, there was complete loss of expenditure incurred by the assessee. In the interest of justice, this ground is also restored to the file of A.O. fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
