2013 (5) TMI 116

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....jayaraghavan (JM). This appeal preferred by the assessee are directed against the order dt.29.6.2011 passed by the ld. CIT(A)-9 for the Assessment Year 2005-06. 2. The brief facts of the case are that the appellant company is engaged in the business of investment. Return of income showing total loss of Rs. 87,98,40,509/- was filed on 31.10.2005 alongwith the copies of audited balance sheet a....

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....res related to exempt income u/s. 10(34) of the Act. During the year, the assessee company has not received any dividend or any income in respect of investment of shares which is exempt or otherwise does not form part of total income. The AO therefore erred in adding the proportionate finance charges of Rs. 4.06 crores related to exempt income u/s. 10(34) of the Act, while computing the Book Profi....

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.... decision of ITAT, Special Bench Mumbai in the case of Daga Capital Management Pvt. Ltd. (2008) 119 TTJ 289 (Mum) and, has thus, applied the method provided under Rule 8D of the I.T. Rules. At this stage, it is pertinent to note that the decision of Special Bench of Tribunal in the case of Daga Capital Management Pvt. Ltd. (supra) holding that Rule 8D is retrospective in nature, has been over-rule....

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.... AO for deciding the quantum of disallowance, as per the afore-noted judgment of Godrej & Boyce (supra) after allowing a reasonable opportunity of being heard to the assessee. 7. The second ground raised by the assessee reads as follows: "The CIT(A) erred in directing the AO to adjust the book profits computed u/s. 115JB with the expenditure as per Rule 8D r.w.s.14A of the Act." 8. As alr....