2015 (10) TMI 1418

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....harma: This is an appeal filed by the assessee is directed against the order of ld. CIT(A)-4, Mumbai dated 21-09-2012 for the A.Y. 2009-10 in the matter of order passed u/s 143(3) of the Income Tax Act, 1961. 2. The only grievance of the assessee relates to confirming of disallowance of Rs. 27,71,693/- made by the A.O u/s 14A read with Rule 8D. 3. Rival contentions have been heard and per....

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....ed Rule 8D arbitrarily without considering the facts. As per section 14A(2), the Assessing Officer shall determine the amount of expenditure incurred in relation to such income which does not form part of the total income under this Act in accordance with such method as may be prescribed, having regard to the accounts of the assesse, if the Assessing Officer is not satisfied with the correctness o....

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.... Co. Ltd. 328 ITR 81. 5. We have considered the rival contention and found that as per schedule '6' of balance sheet assessee was having Long Term (Unquoted) Investments in Wholly Owned Subsidiary Overseas- Epsilon Limited-Mauritius. As per Rule 8D only those investments should have been considered for the purpose of calculation of Average Investments the income from which does not forming ....

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....ecord we also found that the assessee had made fresh investments of Rs. 3,20,00,000/- Birla Sun Life Cash Plus on 10-04-2008, Rs. 5,00,000/- & Rs. 3,60,00,000/- on 01-10-2008 and 10-10-2008 respectively in LIC Mutual Fund Income Plus Fund and Rs. 1,60,00,000/- LIC MF Liquid Fund on 09-01-2009 totaling to Rs. 8,40,00,000/-. The initial investment is made from cash generated from operating activitie....