2010 (10) TMI 1224

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... evenue is in appeal against the order dated 05.06.2009 passed by the learned Commissioner of Income-tax (Appeals), pertaining to the Assessment Year 2006-07. 2. The only ground raised by the revenue is as under:- On the facts and in the circumstances of the case as well as in law, the Ld. CIT(A) erred in deleting the addition of ₹ 23,75,000/- made by the AO on account of disallowance .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pplying the method prescribed in Rule 8D of the Income-tax Rules, 1962 worked out the disallowance at ₹ 36,09,225/-. The AO further disallowed the sum of ₹ 23,75,007/- and added the same to the total same to the total income of the assessee. 4. On appeal, the learned CIT(A) deleted the disallowance by observing as under:- Considering the above facts, it is clear that investment .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... icer. The Assessing Officer has nowhere carved out the total quantum of interest bearing funds, used for investment purposes which has generated interest free income. 5. Hence, the department is in appeal before us. 6. We have heard both the parties and perused the material on record. 7. It is an admitted position that the assessee has worked out the expenditure to be disallowed under .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X