2014 (1) TMI 896

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....or the Respondent : Mr. Mohit Jain ORDER Per :Amit Shukla , JM This appeal has been preferred by the assessee against the order dated 13.12.2012 passed by CIT(Appeals)-20, Mumbai for quantum of assessment passed u/s 143(3) for the Assessment Year- 2006-07. Only issue involved is disallowance of Rs. 24,62,494/- made u/s 14A. 2. The Assessing Officer on the perusal of profit and loss acc....

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.... of the company and the amount allocable to general business activity is as under: (Rs. in lacs) Sr. Particulars Amount Amount 1. Total Expenditure Less. Donation Salaries/Cont. to PF/Staff Welfare Loss on Sale of Assets General Administration Expenses (A) Ratio of A upon salary of Rs. 39.16 is 15.00 39.16 0.59 278.51 54.75 223.76 571% Therefore, ....

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....d detail reasoning as to how the assessee has attributed a sum of Rs. 1,02,663/- on account of disallowance u/s 14A and how Rule 8D cannot be applied for working of disallowance u/s 14A for the Assessment Year 2006-07. Ld. CIT(Appeals) however, rejected the assessee's contention and upheld the disallowances made by the Assessing Officer. On the ground that Rule 8D provides reasonable basis for dis....

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....he CIT(Appeals) and the AO, it is seen that the AO has applied Rule 8D for working out the disallowance u/s 14A. The Ld. CIT(Appeals) has confirmed disallowance even though he agreed that Rule 8D cannot be held to be applicable in the Assessment Year 2006-07 but he confirmed the disallowance on the ground that it is quite reasonable. The assessee has worked out the disallowance of Rs. 1,02,663/- a....