2012 (3) TMI 509

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...., AM : The issue in assessee's appeal is with reference to disallowance u/s. 14A. 2. The Assessing Officer noticed that assessee had made certain investments and accordingly invoking Rule 8D made disallowance u/s. 14A of the I.T. Act at Rs. 6,36,513/-. The Ld. CIT(A) confirmed the same by stating as under: "I have considered the issue. Hon'ble Bombay High Court in the case of Godrej....

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....o the current year. I, therefore, confirm the disallowance made of Rs. 6,36,513/-." 3. It was the submission of the Ld. Counsel that the company did not incur much expenditure while offering the income and filed Profit & Loss account to submit that except donation of Rs. 10,00,000/- and professional fees of Rs. 2,89,575/- the balance of expenditure is very small as under: Expenditure Curr....

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....siness and not for earning exempt income. 5. Ld. Departmental Representative relied on the order of AO and Ld. CIT(A). 6. We have considered the issue. As seen from the details of the P&L account filed by assessee receipts were to the tune of Rs. 1.79 crores whereas the expenditure was only Rs. 13.69 lakhs, out of which Rs. 10 lakhs was donation. Out of the balance expenditure, the professio....