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TMI Blog2016 (7) TMI 1658X X X X Extracts X X X X X X X X Extracts X X X X ..... eal I.T.A. No. 406/Mds/2016. 3. The only issue arises for consideration is disallowance of Rs. 2,51,498/-. 4. Shri R. Sivaraman, ld. Counsel for the assessee submitted that during the year under consideration the assessee has received dividend of Rs. 41,38,052/-. The assessee has disallowed expenses u/s 14A to the extent of Rs. 67,829/-. The Assessing Officer has computed the disallowance u/s 14A r.w.r 8D to the extent of Rs. 2,51,498/-. According to the ld. Counsel, the Assessing Officer has not recorded the satisfaction in the assessment order, therefore, there cannot be any disallowance. The ld. Counsel submitted that application of Rule 8D is not automatic. According to the ld. Counsel, for the purpose of applying Rule 8D, the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer in the computation made. When the Assessing Officer found there was a direct expenditure relating to earning of the exempted income and the assessee has not computed the disallowance under Rule 8D, this Tribunal is of the considered opinion that the Assessing Officer was not satisfied with regard to the claim made by the assessee. Therefore, the Assessing Officer has to recompute the disallowance by applying the procedure prescribed under Rule 8D. The average investment made during the year under consideration is not in dispute. The direct expenditure incurred by the assessee to the extent of Rs. 67,829/- for earning the income which do not form part f the total income is also not in dispute. In the absence of any allegatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the claim of the assessee as revenue expenditure. 10. We have considered the rival submissions on either side and also perused the material available on record. Shriram Ownership Trust is a Trust by itself, therefore, its logo cannot be used by any other concern. The object of the Trust is not to do business. The assessee-company was established for the purpose of business. When the assessee-company used the logo belongs to Shriram Ownership Trust, this Tribunal is of the considered opinion that for the purpose of using the logo, the assessee has to necessarily make the payment. In the case before us, the payment was made on turnover basis, therefore, the same has to be allowed as revenue expenditure u/s 37(1) of the Act. This Tribunal d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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