2014 (5) TMI 988

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.... T. M. Pavalan, JM: This appeals filed by the Assessee is directed against the order of the Ld.CIT(A) -22, Mumbai dated 27.12.2011 for the Assessment Year 2007-08. 2. Grounds No. 1, 2 & 3 relate to the disallowance of Rs.48,66,304/- made by the AO u/s 14A read with Rule 8D and the direction given by the Ld.CIT(A) to the AO to treat the expenditure directly attributable to the income theer by....

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....Ld.CIT(A) while upholding the disallowance made by the AO, has directed the AO that for carrying out the working of disallowance, the AO shall take expenditure directly attributable to the income and disallow u/s 14A. In addition, for making the disallowance of interest, the AO shall find out the ratio of average value of investment in shares and mutual fund to the average of total assets as per B....

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....disallowance has to be worked out by the AO on some 'reasonable basis' and not under rule 8D in so far as the assessment years prior to 2008-09 are concerned. Presently we are dealing with the A.Y. 2007-08. In such year, obviously rule 8D cannot be applied, but the disallowance is required to be worked out on some reasonable basis. As the AO has computed the disallowable amount as per rule 8D, suc....

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....the surcharge and educational cess be levied. It is relevant to note that in the Income Tax Return form- ITR-6, column no. 4, the assessee is required to fill the credit u/s 115JAA of tax paid in earlier years and after which on the balance tax payable, the assessee has to fill the surcharge and educational cess at column no. 8 and 10 for the purpose of arriving at the gross tax liability. Also, t....