2014 (1) TMI 1183

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....led this appeal for the assessment year 2008-09 against the order of ld. CIT(A) dated 11.8.2011 vide which ld. CIT(A) has confirmed the disallowance u/s 14A of the Income Tax Act, 1961 (the Act) made by AO of Rs.13,73,731/-. 2. We have heard the ld. Representatives of the parties and have perused the orders of authorities below. 3. The assessee is a company registered as a Non-Banking Finance Co....

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....xpenses of Rs.13,73,731/- debited by assessee in its profit and loss account. The AO applied Rule 8D of the Income Tax Rules, 1962 (the Rules) to make disallowance u/s 14A of the Act and worked out the disallowance at Rs.1,56,03,383/-. There is no dispute that there is no interest expense debited by assessee in its profit and loss account for making aforesaid investments and earning dividend incom....

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....elates to merely bank interest, therefore entire expenditure could be said to have been incurred for earning dividend income only. 4. During the course of hearing before us, ld. AR referred the statement of facts which was filed before the ld. CIT(A) and copy placed along with Form No.35 giving details of the expenditure which includes auditor remuneration Rs.6,62,924/-, professional fees Rs.2,36....