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TMI Blog2023 (5) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... sources . Hence, no disallowance of expenses is called for under section 14A r.w. Rule 8D. CIT(A) also misapplied the decision of Godrej Boyce s case [ 2017 (5) TMI 403 - SUPREME COURT] as legal import of the decision is that the expenditure incurred in earning the exempt income cannot be allowed to be deducted which is as per law enshrined in section 14A - CIT(A) also discarded the explanation of the assessee that no expenditure was incurred to earn dividend income since the entire expenditure had been capitalised as Capital Work-in Progress without assigning any valid legal and tenable reasons. Identical disallowances made in preceding AY 2011-12 and 2012-13 have been deleted by the Ld. predecessors of the Ld. CIT(A). Rule of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all. 3. That on the facts and in circumstances of the case Ld. CIT(A) has erred in directing to the Assessing Officer to verify the opening and closing amount of investment for calculating disallowance u/s 14A r.w.r. 8D as the Ld. AO while computing the disallowance u/r 8(iii) has wrongly considered the investments as on 01.04.2012 at Rs. 51,000/- instead of Rs 1000/- and on 31.03.2013 at Rs. 3,885,226,591/- instead of Rs. 51,000/- duly disclosed in audited Balance Sheet. The figure of Rs. 3885226591/-as on 31.03.2013 is repeated from AY 2012-13 and is nowhere appearing in AY 2013- 14. 3. All the three grounds relate to disallowance of Rs. 97,13,193/- under section 14A of the Income Tax, 1961 (the Act ). The Ld. Assessing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 01,04.2012 51000/-. Investment as on 01.04.2013 3885226591/- Average of investment 1942638795/- One half % of average value of Investment subject to maximum Of expenditure (avg. X 0.5%) 97,13,193/- Total disallowance as per Rule 8D 97,13,193/- This resulted in the impugned disallowance. 4. On appeal filed by the assessee before the Ld. CIT(A), the disallowance was confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of assessment proceedings, the assessee vide letter dated 19.03.2016 submitted before the Ld. AO that similar disallowance under section 14A made in AY 2011-12 was deleted by the Ld. CIT(A) vide his order dated 26.06.2014 as no business expenditure was claimed in the computation of income. The assessee placed on record working of disallowance under section 14A r.w. Rule 8D at page 37 of Paper Book as per which, disallowance, if at all, works out to Rs. 130/- only. Similar disallowance of Rs. 97,13,069/- made in AY 2012-13 has also been deleted by the predecessor Ld. CIT(A), copy of which is placed at pages 38 to 44 of the Paper Book. 7. The Ld. DR supported the order of the Ld. CIT(A). 8. We have given careful thought to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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