2012 (8) TMI 980

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....er) This appeal filed by the department against the order dated 15.6.2011 of the CIT(A)-3, Mumbai for the assessment year 2008-09 disputing the action of ld CIT(A) in deleting disallowance made by the AO u/s.14A r.w. Rule 8D of I.T.Rules amounting to Rs. 15,74,023. 2. The relevant facts are that during the course of assessment proceedings, AO asked assessee to explain as to why section 14A r....

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....tion 14A r.w. Rule 8D. It was contended that AO computed the disallowance in a mechanical manner by applying arithmetic formula of rule 8D. It was contended that dividend income is Rs. 7,547 which was also credited through ECS. Ld CIT(A) considered the submissions of assessee and facts of the case and vide para 1.3 of the impugned order, deleted the disallowance made by the AO, which reads as unde....

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....not given any findings on whether the assessee has made a claim of expenditure in relation to exempt income and the claim is not correct. It is seen that the assessee has earned dividend of Rs. 7,547 only, which has been directly credited to bank through ECS. The interest of Rs. 58,304 received on PPF, for which a journal entry is passed on 31.3.3008 and similarly, interest of Rs. 81,40,390 on tax....

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....PB, which contains a copy of balance sheet, income and expenditure account and the details of professional expenses claimed and submitted that assessee has not debited any interest expenses in the profit and loss account. It was contended that net professional receipts of the assessee is Rs. 25.37crores and the expenditure claimed is Rs. 7.36 crores and in the professional expenses, there is no cl....