9911796707
TMI Blog2015 (7) TMI 1411X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany was in existence for decades, the law laid down by the jurisdictional High Court in RKKR Steels P. Ltd. [ 2001 (11) TMI 20 - MADRAS HIGH COURT] and in K. Subramaniam Bros [ 2000 (12) TMI 67 - MADRAS HIGH COURT] would not change. This Tribunal is of the considered opinion that the law laid down by Madras High Court in RKKR Steels P. Ltd. (supra) and in K. Subramaniam Bros (supra) is squarely applicable to the facts of the case. Therefore, this Tribunal do not find any infirmity in the order of the CIT(Appeals) and accordingly, the same is confirmed. Disallowance u/s 14A - expenditure relatable to earning of dividend disallowed - HELD THAT:- As rightly submitted by the Ld. D.R., AO on the basis of the statement of account call ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... everal decades. But because of their education, the company could not have grown to this level. The Ld.counsel submitted that the entire expenditure was only for the purpose of business. The Ld.counsel placed reliance on the judgment of the Delhi High Court in Kostub Investment Ltd. v. CIT (2014 365 ITR 436. According to the Ld. counsel, the judgments of Madras High Court in CIT v. RKKR Steels P. Ltd. (2002) 258 ITR 306 and in K. Subramaniam Bros v. CIT 250 ITR 769 are not applicable to the facts of the case. 4. On the contrary, Sh. P. Radhakrishnan, the Ld. Departmental Representative, submitted that admittedly the children of the Directors were sent to foreign for education and the expenditures were incurred by the assessee-company. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the considered opinion that the law laid down by Madras High Court in RKKR Steels P. Ltd. (supra) and in K. Subramaniam Bros (supra) is squarely applicable to the facts of the case. Therefore, this Tribunal do not find any infirmity in the order of the CIT(Appeals) and accordingly, the same is confirmed. 6. The next ground of appeal is with regard to disallowance made by the Assessing Officer under Section 14A of the Income-tax Act, 1961 (in short 'the Act'). 7. Sh.S.A. Balasubramanyan, the Ld.counsel for the assessee, submitted that the Assessing Officer can compute the disallowance under Rule 8D of the Income-tax Rules, 1962 only in the case where he was satisfied with the correctness of the claim of the assessee with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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