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TMI Blog2023 (8) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... n a case where assessee was having sufficient funds available with it, more than amount invested for earning the dividend, the disallowance in respect of interest expenditure u/s 14A r.w.r. 8D of the Rules is not permissible - HELD THAT:- From the perusal of [ 2023 (4) TMI 334 - ITAT AHMEDABAD] the contentions of the Ld. AR that no satisfaction was recorded has been taken into account and after taking cognisance of the same, the Tribunal has come to the conclusion that the Assessing Officer has looked into the aspect of element of administrative expenses and directed the Assessing Officer to take 0.5% thereby invoking the said Rule i.e. Rule 8D. The contentions of the AR that current liabilities and provisions should not be reduced from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 passed by the Tribunal. 2. The Ld. AR submitted that during the year under consideration, the Revenue computed an amount of Rs.1,82,91,360/- as well as Rs.2,11,88,774/- as interest and administrative expenses disallowable under Section 14A read with Rule 8D. The assessee filed appeal on both the aforesaid issues before the CIT(A) and the CIT(A) provided relief in respect of disallowance of interest expenditure, however, confirmed the disallowance in respect of administrative expenditure. The assessee as well as the Revenue filed appeal before the Tribunal. The Ld. AR submitted that at the time of argument/hearing, the assessee submitted that the assessee itself has disallowed Rs.60,276/- and though there is a strong case to argue on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l as well as the Hon'ble High Court and set aside to the file of the Assessing Officer to verify if the current liabilities and provisions should be reduced from the opening and closing stock of the current assets which was required to be considered only if ground no.1 of the appeal filed by the Revenue is allowed. The Ld. AR submitted that ground no.1 of Revenue's appeal is covered by the order of the Tribunal and Hon'ble High Court in assessee's own case in the past years. Hence, there was no need to set aside the issue to the file of the Assessing Officer for verification of the facts which was taken in the Cross Objection being the alternate contention against the Revenue's appeal. As regards to ground no.2 in assessee's appeal and grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act read with Rule 8D of the Rules is not permissible. From the perusal of paragraph no.9 of the order dated 24.03.2023 the contentions of the Ld. AR that no satisfaction was recorded has been taken into account and after taking cognisance of the same, the Tribunal has come to the conclusion that the Assessing Officer has looked into the aspect of element of administrative expenses and directed the Assessing Officer to take 0.5% thereby invoking the said Rule i.e. Rule 8D. The contentions of the Ld. AR that current liabilities and provisions should not be reduced from the opening and closing stock of current assets should have been taken into account by the Assessing Officer. As an impact, simplicitor directing the Assessing Officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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