2013 (12) TMI 7

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....se of disallowance of expenses under section 14A is not applicable for this year as these provisions are not retrospective in nature and hence cannot be applied to assessment year prior to assessment year 2008-09 in view of decision of Bombay High Court in the case of Godrej and Boyce manufacturing private Limited 328 ITR 81 ignoring the fact that department has not accepted the decision of the Bombay High Court and has filed SPCIAL LEAVE PETITION before Supreme Court. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is justified in holding that Rule 8D cannot be applied in AY 2007-08, without appreciating the fact that AO has held this method as reasonable for applying in assessee's case for AY 200....

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....he assessee, in continuation of its submissions before the CIT(A), submitted the bifurcation of expenses, as under: 7. The assessee, accordingly worked out the disallowance, linked towards tax free income of Rs. 11,59,234/-. 8. This amount, as submitted by the assessee, before the CIT(A), was found to be reasonable by the CIT(A). He, therefore, restricted the disallowance to Rs. 11,59,234/-, as against Rs. 1,33,00,000/-, computed by the AO. 9. Against this order, the department is in appeal before the ITAT. 10. Before us, the DR, placed reliance on the order of the AO. However, he accepted the current legal position, as laid down by the Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. vs DCIT, reported in 32....

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....led by the department is dismissed. Order pronounced in the open Court on 22nd November, 2013. ============= Document 1 Exempt Income Particulars Income other than Exempt income Total Office & Administrative Expenses Disallowed/Considered Separately Donations Amortisation of Share Issue Expenses Amortisation Expenses of Debenture Amount (Rs) Percentage 93,769,082 47% 107,766,042 53% 201,535,124 Amount (Rs) 750,000 3,784,562 Issue 2,003,595 811,839 7,349,996 Provision for Diminution in Value of Investments Subtotal Document 2 Subtotal of Other Expenses detailed below Total as per Books 6,217,744 Particulars 13,567,740 Common Exp. ....