2014 (4) TMI 384

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....his appeal, the assessee challenges the order passed by the ld. Commissioner of Income Tax(A)-XI, New Delhi u/s 263 holding the impugned order of assessment as erroneous and prejudicial to the interest of revenue and setting aside the following issues:- a) To recalculate the disallowance of the proportionate expenses as per Rule 8D of the Income Tax Rules. b) To disallow the rebate of securi....

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....D of the Income Tax Rules are claimed to be enclosed. On a query from the Bench, ld. counsel for the assessee could not show us the working of average of investment and average of assets in terms of Rule 8D from the record. Besides, on the second issue of evidence of payment of security transaction tax in prescribed form also, the ld. counsel for the assessee could not show it from the record. Ld.....

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....ssioner of Income Tax 37 TR 271(SC) 3. Ld. DR, on the other hand, contends that Rule 8D has a specific mechanism and methodology to arrive at the proportionate disallowance based on cost of average investment and assets. On a query raised by the Bench, ld. counsel of the assessee could not show how the same was worked out. In this situation, the only legal course left by the Assessing Officer w....

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....(A) is justified in recomputing of section 263 of the Act. Besides, ld. Commissioner of Income Tax(A) has not reversed the order of Assessing Officer but as an exercise of discretion has directed the Assessing Officer to re-decide the issue after proper verification. 4. We have heard rival submissions and perused the material on record. We find merit in the working of ld. DR. Qua the queries ra....