2016 (10) TMI 249

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....r. Atul Jasani, for the Respondent ORDER P. C. This appeal under Section 260A of the Income Tax Act, 1961 ("the Act") challenges the order dated 17 September 2013 passed by the Income Tax Appellate Tribunal ("Tribunal"). 2. The impugned order relates to Assessment year 2007-08. 3. The Revenue has urged the following two questions of law for our consideration: (A). "Whether ....

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....voking of Rule 8D of the Income Tax Rules 1961 (the Rules) while computing the disallowance of expenditure under Section 14A of the Act for the Assessment Year 200708 and second the disallowance of expenditure under Section 14A of the Act at 5% on reasonable basis. (ii) So far as the first issue is concerned, Mr. Ahuja fairly states that it stands concluded against the Revenue by the decision o....

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....nce of the expenditure to the extent of 15% of the exempted income. In the above view, it is submitted that for this Assessment Year also reasonable disallowance would be 15% of exempted income. (iv) We note that adopting the measure of 15% as applied for the Assessment Year 2008-09 to this year would be unreasonable. This for the reason that the disallowance under Section 14A of the Act in A.Y....

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....w, question (a) as formulated does not give rise to any substantial question of law. Thus, not entertained. 5. Appeal admitted on substantial question of law at (b). 6. The aforesaid question (b) is admitted notwithstanding the fact that Mr. Dave, learned Counsel appearing for the Assessee, placed reliance upon the decision of this Court in CIT vs. OCB Engineers [2013] 32 Taxmann 204, which ....