2010 (11) TMI 696

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....ncome-tax Act, 1961 and in confirming addition of Rs.2,04,827/-.   (b) On the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Appeals) has erred in not appreciating the fact that the appellant has not incurred any expenditure for earning dividend income, therefore, there is no expenditure which has been claimed by the appellant which is disallowable u/s 14A of the Income-tax Act, 1961. The addition of Rs.2,04,827/- made by the assessing officer is liable to be fully deleted."   2. We have heard the learned DR. None for the assessee was present despite several notices sent to the assessee but none appeared.   3. In this case, the Assessing Officer made the addition of Rs.2,04,827/- by way....

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.... (ITA No.8057/Mum/2003) in the case of ITO vs. Daga Capital Management Pvt. Ltd. held that this Rule 8D would be retrospective in nature. Keeping in view the specific provisions of Rule 8D and the judicial pronouncement, the addition of Rs.2,04,827/- made by the assessing officer u/s 14A of Income-tax Act' 1961 by estimating the expenditure incurred for earning exempted dividend income as per Rule 8D of Income-tax Rules' 1962, is confirmed. This ground of appeal is dismissed."   From the orders of the authorities below, it is clear to us that sum of Rs.2,04,827/- has been disallowed by the Assessing Officer on account of expenditure incurred for earning exempted dividend income by applying Rule 8D of the Income-tax Rules 1962 after fo....