TaxTMI 
TaxTMI 
2014 (1) TMI 287
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....ted 08.10.2010. 2. The appeal arises two issues per its two grounds, which shall take up in seriatim. The first issue is in respect of the confirmation of disallowance in respect of training expenses, claimed in the sum of Rs. 10,00,550/- by the assessee-company, in respect of its director, Ms. Protima Wagh, who is also the daughter of the Chairman/promoter- director, Sri S.M. Wagh, for pursuing a study course leading to the degree of Bachelor of Science and Master of Science (in Biotechnology), in USA. 3.1 Opening the arguments for and on behalf of assessee, it was submitted by the learned AR, its counsel, that this is a subsisting issue in the assessee's case; the educational course under the reference being for a period of five yea....
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....nsure consistency of approach by the Department, as well as enable the assessee to plead its case along the same lines for this year as well. We decide accordingly. 5. The second and only other issue is the disallowance in the sum of Rs. 3,16,056/- u/s. 14A read with rule 8D, having been since confirmed by the first appellate authority. This issue, again, it was submitted by the ld. AR, was present in the assessee's case for AY 2007-08, and stood restored by the tribunal to the file of the assessing authority for fresh adjudication. Accordingly, he would press for a like course being adopted by it for the current year as well. The ld. DR, on the other hand, would bring to our notice that rule 8D is mandatory for the current year, so that....
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.... submit that only an income of Rs. 9 lacs has been earned by the assessee, so that a disallowance with reference to the same, in a reasonable proportion, could be made by the tribunal itself. 6. We have heard the parties, and perused the material on record. 6.1 As regards the legal issue; the assessee claiming non-compliance of the condition of Section 14A (2), so that no disallowance u/s.14A(1) could be made, no doubt the same is a prerequisite where the assessing authority proceeds to determine the expenditure incurred by the assessee in relation to income which does not form part of its total income. So, however, the initial onus is on the assessee to exhibit, with reference to its accounts, that it has not incurred any expenditure....
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....the expenditure incurred, separately qua its various parts, by prescribing a uniform method for the same. As such, until and unless the assessee is able to factually establish that no part of the borrowed funds has been utilized for investment in tax-free securities, disallowance qua the interest expenditure incurred would follow, given the mandate of r. 8D(2)(ii). As regards incurring of indirect expenditure, again, the initial onus is on the assessee, which has not been discharged in the instant case. The said expenditure may assume many forms, with, in fact, the decision making in respect thereof (investment) being located at the higher echelons of the management, and which can only be upon expending time and resources. In a given cas....
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....[2009] 121 ITD 318 (Del) (SB), applying the decision by the apex court in the case of CIT v. Rajendra Prasad Moody (1978) 115 ITR 519 (SC), that the expenditure incurred may not have any one to one correspondence with the income, so that basing the disallowance of the expenditure with reference to the tax-exempt income is essentially flawed. The disallowance u/s. 14A is qua expenditure, the purpose of incurring which is for earning income, which does no form part of total income, and may not lead to the same (income), or even in a fixed ratio. As such, the proposition advanced by the ld. AR during hearing in restricting the disallowance with reference to the dividend income is not sustainable in the eyes of law. Under the circumstances, we,....