2015 (1) TMI 1204

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....R For the Appellant: Dr. K.Shivaram & Shri Rahul Hakani For the Respondent: Shri Akhilendra Yadav   O R D E R PER JOGINDER SINGH, JM: The assessee is aggrieved by the impugned order dated 02/07/2012 of the ld. First Appellate Authority, Mumbai. The assessee has raised the following grounds:   1.The ld. Commissioner of Income tax (Appeals) erred in confirming disallowanc....

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....4A r.w. Rule8D may be deleted. 4. The learned CIT(A) erred in holding that A.O. duly recorded satisfaction before invoking section 14A r.w. Rule 8D without appreciating the fact that assessee had shown bifurcation of Financial expenses to A.O. to show that interest expense was not incurred for investment in shares or for earning exempt dividend income and A.O. did not reject the same and still ....

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.... out of own funds and not out of borrowed funds, therefore, no disallowance u/s 14A r.w. Rule 8D is to be made. 2.1. On the other hand, Shri Akhilendra Yadav strongly defended the conclusion arrived at by the ld. Commissioner of Income tax (Appeals) by contending that a well reasoned order has been passed by the ld. First Appellate Authority as apportionment of expenditure for earning the divid....

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....ppeal, before the ld. Commissioner of Income tax (Appeals) broadly the stand taken in the assessment order was affirmed against which the assessee is in further appeal before this Tribunal. The totality of facts clearly indicates, as claimed by the assessee that no borrowed funds were utilized for earning the exempt income by the assessee and further the dividend were directly credited in the bank....