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TMI Blog2021 (3) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... e without any calculation and without any basis. On an examination of facts, we find that the Ld. AO made the disallowance, based on Tax Audit Report. Thus, we uphold the order of the Ld. CIT(A) on this issue and dismiss ground no. 2(a) of assessee s appeal. Net interest expenditure should be considered while calculating the disallowance made under Rule 8D(2)(ii) of the I.T Rules, 1962 - Assessee has not submitted any calculation or other information in support of this ground. The Ld. AO at page-3 held that interest on borrowing obtained for specific purposes is deleted from the total interest expenses of the assessee and only the balance is disallowed under Rule 8D(2)(ii). In the absence of any cogent material filed by the assessee, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration of the facts and circumstances of the case and perusal of the papers on record and the orders of the authorities below we hold as follows:- 4. We first take up the revenue s appeal-ITA No. 2429/Kol/2019 for the A.Y 2011-12. Grounds of appeal read as follows:- 1. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in giving direction for re-computation the disallowance u/s. 14A r.w Rule 8D of the Income Tax Rules, 1962 made by the AO relying on the judicial pronouncement of the Hon ble ITAT, Kolkata without appreciating the fact that interest bearing loan fund was utilized in dividend earning investment made in group companies. 2. Whether on the facts and in the circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. Commissioner of Income Tax (Appeals) did not mention about considering the net interest expenses while calculating the disallowance under Rule 8D(2)(ii) ignoring the fact that this same proposition was accepted by the Assessing Officer in the earlier Assessment Years. 3. (a) For that the order passed by the Ld. Commissioner of Income Tax (Appeals) failed to appreciate the fact that the Hon ble High Court has struck down section 43B(f) of the Act which deals with the Leave Encashment in the case of Exide Industries Ltd vs. Union of India [ 292 ITR 470] and thus the same is not disallowable. 4. For that the Appellant craves leave to amend, add or delete any of the ground mentioned above at any time before the final hearing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the assessee has not submitted any calculation or other information in support of this ground. The Ld. AO at page-3 held that interest on borrowing obtained for specific purposes is deleted from the total interest expenses of the assessee and only the balance is disallowed under Rule 8D(2)(ii). In the absence of any cogent material filed by the assessee, we uphold the order of the Ld. CIT(A) on this issue and dismiss ground no. 2(b) of assessee s appeal. 11. Ground no. 3(a) of assessee s appeal has to be rejected as this issue has been adjudicated by the Hon ble Supreme Court against the assessee in the case of Exide Industries Ltd Vs. U.O.I (2020) 425 ITR 1(SC). Respectfully following the same, we dismiss this ground (3a) of as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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