2009 (1) TMI 869

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.... by the revenue is filed against the order of the CIT (Appeals) for the assessment year 2005-06. The following two grounds have been raised in this appeal: "1. In the facts and circumstances of the case, the Ld. CIT (A) erred in deleting the addition of Rs. 28,60,005/- out of total addition of Rs. 29,10,005/- made by A.O. and in ignoring the provisions of section 14A(1) inserted with retr....

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....- and claimed that no expenditure was incurred for earning dividend income to be disallowed under section 14A of the Act. The Assessing Officer did not accept the contention of the assessee. He held that to monitor the investment made by the assessee and the exempt income earned in the form of dividend income, undoubtedly management/establishment expenses and other office overheads must have been ....

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.... matter to the file of Assessing Officer for fresh consideration in accordance with the amended provisions of the Act to make the disallowances in relation to exempted income on the basis of such method as may be prescribed. The CIT (Appeals) however estimated the expenditure himself at Rs. 50,000/- and deleted the disallowance of the balance amount of Rs. 29,10,005/-. The revenue is in appeal. Th....

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....rected in the earlier year. 5. As regards second ground, we find that the matter stands covered in favour of the assessee by the decision of the Tribunal in the case of ITO vs. Samiran Majumdar 280 ITR (At) 74 (Kolkata) wherein the Tribunal held that the term "computer" has not been defined under the Act, yet Explanation (a) to clause (xi) of section 36(1) of the Income-tax Act, 1961, defined t....