TaxTMI 
TaxTMI 
2016 (7) TMI 925
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....the Tribunal has partly allowed the appeals of the Revenue as well as the assessee. 2. The Revenue has proposed the following substantial question of law for our consideration: "Whether the ITAT has erred in fact and in law in deleting the addition of Rs. 66,63,882/- made by the A.O. u/s. 14A of the Act read with rule 8D of the IT Rules?" 3. Brief facts of the case are that, the respondent-assessee is in th business of laying and operating natural gas transportation network through pipeline and the work is carried out on project to project basis. The assessee has filed its return of income on 30.09.2008 for the assessment year 2008-09 declaring total income of Rs. 113,56,66,684/- and subsequently a revised return of income was filed on 2....
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....ed by the assessee, then there is no disallowance ought to be u/s. 14A of the Income Tax Act. The following observations are worth to note:- 4. Counsel for the Revenue submitted that the Assessing Officer as well as CIT(Appeals) had applied formula of rule 8D of the Income Tax Rules, since this case arose after the assessment year 2009-2010. Since in the present case, we are concerned with the assessment year 2009-2010, such formula was correctly applied by the Revenue. We however, notice that sub-section (1) of section 14A provides that for the purpose of computing total income under chapter IV of the Act, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of th....