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TMI Blog2021 (9) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... ion with regard to the expenditure vis- -vis the exempt income, i.e. dividend . In view of the above overwhelming satisfaction recorded by the AO as to the correctness of the assessee's claim in this regard, we are not impressed with the ld. AR's submission that the AO did not record satisfaction in terms of section 14A(2) of the Act. As decided in own case [ 2018 (11) TMI 1869 - ITAT PUNE] ITAT has restored the matter of section 14A disallowance to the file of AO with certain directions. In reaching this conclusion, the Tribunal relied upon its order in the assessee's own case for the assessment years 2008-09 to 2011-12 - On merits, we set-aside the impugned order and remit the matter to the file of AO for computing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approved by the Tribunal. The disallowance, if any, was urged before the AO to be restricted to this extent only. The AO rejected the assessee's contention and computed the disallowance u/s. 14A read with rule 8D(iii) of the Income-tax Rules, 1962 at ₹ 65,14,825/-. The ld. CIT(A) accorded his imprimatur to the AO's decision on this score, against which the assessee has come up in appeal before the Tribunal. 4. We have heard the rival submissions and gone through the relevant material on record. The assessee is engaged in manufacture and sale of scooters and parts and also dies for Pressure Die Casting. It made certain investments. Balance sheet of the assessee company has been placed at page 25 of the paper book, which ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to be attributable to earning the income from dividend. The above submissions of A.R. of the assessee company have been considered carefully but his plea stating that the assessee company had not incurred any expense in relation to earning exempt income cannot found to be acceptable as maintaining portfolios do require constant monitoring and control and incidental expenses are incurred and expenditure has been debited to the profit and loss account. 5.3 Therefore in view of the above facts and circumstances and in the absence of a one-to-one correlation with regard to the expenditure vis- -vis the exempt income, i.e. dividend, disallowance under section 14A of the Act is being computed in accordance with the formula given under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with certain directions. In reaching this conclusion, the Tribunal relied upon its order in the assessee's own case for the assessment years 2008-09 to 2011-12. A copy of such order for the four assessment years has also been placed on record. Relevant directions have been given in para 10 of the Tribunal order, that have been adopted by the Tribunal in its order for the immediately preceding assessment year. Nothing has been brought to our notice for demonstrating that the Tribunal orders have been reversed or modified by the Hon'ble High Court in any manner. Respectfully following the consistent view of the Tribunal on this issue, we set-aside the impugned order and remit the matter to the file of the AO for deciding this issue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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