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TMI Blog2022 (10) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal by the assessee is directed against the order of the ld. CIT (A) - 23, New Delhi dated 23.09.2021 pertaining to assessment year 2012-13. 2. The grounds of appeal taken by the assessee read as under :- "1. On the facts and circumstances of the case the order passed by the ld. Commissioner of Income Tax (Appeals) [CIT(A)] is bad both in the eye of law and on facts. 2. Action of the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act, 1961 (for short 'the Act') as the same were deposited after the due date mentioned in the specific Act but within the due date of filing the return of income. Ld. CIT (A) also upheld the decision. 4. Against the above order, assessee is in appeal before us. None appeared on behalf of the assessee. We have heard ld. DR for the Revenue and perused the records. 5. Upon careful co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had made investment in equity shares and earned exempt income of Rs.27,41,664/-. Assessee was asked to explain why disallowance u/s 14A read with Rule 8D should not be made. The assessee responded that borrowed funds on which interest expenses claimed has been fully utilized for its business and no part has been invested for earning dividend income. AO in this regard referred to several ITAT dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure in relation to exempt income, the Interest expenditure of Rs.44.06,538/-, which has been incurred for both taxable and exempt income, are being apportioned as per Rule 8D(2(ii)." 7. Upon assessee's appeal, ld. CIT (A) upheld the order of the AO by inter alia holding that assessee should have maintained separate accounts in respect of exempt income. 8. Against the above order, assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, it is not the case of the Revenue that assessee has not own funds to make those investments on which exempt dividend income has been earned. Rather the case of the Revenue is that assessee should have brought in one to one nexus in the funds and investment. This view is not correct in terms of the decision of Hon'ble Bombay High Court cited above, we set aside the orders of the authorities bel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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