2013 (4) TMI 487

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....Per Sanjay Arora, A.M. : This is an Appeal by the Revenue arising out of the Order by the Commissioner of Income Tax (Appeals)-17, Mumbai ('CIT(A)' for short) dated 01.11.2011, partly allowing the assessee's appeal contesting its assessment u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) vide order dated 16.11.2010 for the assessment year (A.Y.) 2007-08. 2. The facts in brief ....

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.... the ld. CIT(A), though confirmed the disallowance in principle, restricted the same to Rs.10,000/-, as against @ 0.5% of the average investment by the A.O. As clarified by the hon'ble bombay high court in the case of Godrej & Boyce Mf. Co. Ltd. vs. Dy.CIT [2010] 328 ITR 81 (Bom), rule 8D, which stood applied by the A.O., was not retrospective and would apply only from A.Y. 2008-09 onwards, though....

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.... the following decisions by the tribunal, wherein disallowance qua administrative and management expenses as low as at 2% of the exempt income, had been found justifiable, taking us through the relevant parts of the said orders: Sr. No. Case Citation 1. Sumitomo Mitsui Banking Corporation Vs. DCIT (Intl. Tax) (2012) 34 CCH 013 Mumbai 2. ITO Vs. M/s. BPS Securities P. Ltd. ....

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.... the relevant year, would be the amount of such expenses. The orders of both the authorities are silent in the matter. The Revenue has also not brought on record its figure, with reference to which only, coupled with other relevant information, the reasonability or otherwise of the disallowance, which is being impugned by the Revenue, could be adjudged by us. Under the circumstances, the disallowa....