2012 (2) TMI 516

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....NSAL, JUDICIAL MEMBER This is an appeal filed by the assessee. It is directed against the order passed by the CIT (A) dated 5th April, 2011 for Assessment Year 2007-08. 2. The grievance of the assessee in the present appeal is regarding sustained disallowance of Rs. 12,71,622/- being 10% of the dividend income of Rs. 1,27,16,222/- under the provisions of Section 14A of the Act. 3. The ld. Asse....

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....ome and by observing the facts of the case, he has expressed the opinion that it will meet the end of justice if the disallowance is restricted to 10% of the dividend income and, in this manner, learned CIT (A) has sustained the disallowance to the extent of Rs. 12,71,622/- by giving the relief to the assessee of a sum of Rs. 3,30,926/-. The assessee is still aggrieved and has raised various groun....

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....nd for cogent reasons that amount of such expenditure as claimed by the assessee is not correct, he is required to determine the amount of such expenditure on the basis of a reasonable and acceptable method of apportionment. He, therefore, submitted that it would be proper if the matter is restored back to the file of Assessing Officer to re-adjudicate the disallowance in the light of the aforemen....

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....iod, whenever the issue of Section 14A arises before an Assessing Officer, he has, first of all, to ascertain the correctness of the claim of the assessee in respect of the expenditure incurred in relation to income which does not form part of the total income under the Act. Even where the assessee claims that no expenditure has been incurred in relation to income which does not form part of the t....