2012 (6) TMI 406

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....a for the Appellant. Alok Singh for the Respondent. ORDER G.D. Agrawal, Vice-President - This appeal by the assessee is filed against the order of learned CIT(A)-VIII, New Delhi dated 4th November, 2011 for the AY 2008-09. 2. The grounds raised by the assessee read as under:- "1.  That the learned CIT(A) has erred in law and on facts in failing to restrict the disallowance u....

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.... expenditure claimed by the assessee in the profit & loss account is only Rs. 49,04,028/- while the Assessing Officer disallowed Rs. 2,37,59,757/-. That apart from dividend income, the assessee has other income to the extent of Rs. 97,04,935/-. Therefore, part of the total expenditure incurred by the assessee is certainly attributable to earning of other income. However, even if it is presumed tha....

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.... 5. We have carefully considered the arguments of both the sides and perused the material placed before us. Section 14A reads as under:- "Expenditure incurred in relation to income not includible in total income. 14A. [(1) For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income....

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....ontained in this section shall empower the Assessing Officer either to reassess under section 147 or pass an order enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee under section 154, for any assessment year beginning on or before the 1st day of April, 2001.]" 6. From the above, it is evident that as per sub-section (1) of Section 1....