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TMI Blog2021 (10) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The assessee has suo-moto disallowed the sufficient on account of fees paid to the portfolio manager - we do not find justification on the part of CIT(A) in confirming the disallowance made by the AO by invoking the formula under Rule-8D(2)(iii), merely on assumption basis without recording the satisfaction as to how the suo-moto disallowance made by the assessee was not co-relating to the accounts of the assessee vis- -vis other circumstances - the impugned order of the Ld. CIT(A) is set-aside and the disallowance u/s 14A is restricted to that has been suo-moto made by the assessee. Appeal of the assessee stands allowed. - ITA No.2051/Del/2018 - - - Dated:- 8-10-2021 - SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84,25,538/-, however the disallowance of expenditure relatable to earning of such income was made by the assessee of consultancy fee and STT of ₹ 17,13,287/- only. The Assessing Officer noted that the expenditure suo-moto disallowed by the assessee was very low, he therefore, worked the disallowance as per the provisions of section 14A r.w.r. 8D of the Income Tax Rules. Since, the assessee did not use any interest bearing funds, therefore, no disallowance on account of interest expenditure was made by the Assessing Officer. However, in respect of administrative expenses, the Ld. Assessing Officer worked the disallowance as per formula prescribed under Rule 8D(2)(iii) of the Income Tax Rules, at ₹ 28,85,273/-. 4. Being aggrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y observing that the assessee might have made some overhead expenses and further that the investor has to keep an eye on the investment where huge stakes are involved. We are of the view that above observations made by the Ld. CIT(A) are based only on vague assumption. The assessee has already brought on record that the investment in mutual fund were managed through portfolio manager and the charges paid to the portfolio manager had already been suo-moto disallowed by the assessee. There is no other evidence on the file that the assessee had incurred any other expenditure except the aforesaid fees paid to portfolio manager. Merely because that the investments were high and that the investor has to keep an eye on investment, that does not me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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