Section 14A disallowance remanded for fresh computation after claim of own-funds investment and need for proper opportunity.

Disallowance under section 14A read with Rule 8D was set aside because the assessee claimed restriction of the amount and produced material that the investments were made from own funds. The Tribunal held that the issue needed proper opportunity and, in the interest of justice and fair play, remanded the matter to the Assessing Officer. Fresh computation was directed de novo in light of the governing section 14A principles and the decisions relied upon in the order.

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Issues: Whether the disallowance made under section 14A read with Rule 8D required interference and recomputation by the Assessing Officer.

Analysis: The Tribunal noted that the assessee sought restriction of the disallowance and also placed material to contend that the investment was out of own funds. It found it to afford a proper opportunity and, in the interest of justice and fair play, set aside the appellate order on this issue. The matter was remanded to the Assessing Officer to recompute the disallowance de novo in the light of the principles governing section 14A, including the decisions relied upon in the order.

Conclusion: The disallowance under section 14A was set aside and the issue was remitted to the Assessing Officer for fresh determination.

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