TaxTMI 
TaxTMI 
2016 (12) TMI 1080
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....arties against the respective orders passed by the First Appellate Authority. In ITA No 6214/Mum/2011 the assessee is in appeal against the order of CIT(A) dated 15.6.2011 for the assessment year 2008-09. ITA. No 6476/Mum/2012 and ITA No 6776/Mum/2012 are cross appeal for assessment year 2009-10 directed against the order dated 28.8.2012, ITA No.7137/Mum/2013 and ITA No.63/Mum/2014 are cross-appeals directed against the order dated 25-10-2013, ITA No.5414/Mum/2014 and ITA No.5468/Mum/2014 are also cross-appeals are directed against the order dated 23.6.2014. Since these appeals are filed by the same assessee involving common issue , therefore, for the sake of convenience, these appeals were clubbed together, heard together and are being dec....
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....come of Rs. 22,38,54,239/- in respect of assessment year 2008-09. The case of the assessee was selected for scrutiny under CASS and the notices under section 143(2) and 142(1) were issued and served upon the assessee. During the course of assessment proceedings, the AO found that the assessee has earned dividend income of Rs. 13,89,40,620/- which was claimed as exempt under section 10(34) in the return of income and the assessee suo mottu disallowed expenses relating to / exempt income of Rs. 9,00,907/- under section 14A read with rule 8D of the Rules. The calculation of disallowance as made by the assessee was furnished in Annexure-A to clause 17(1) of the Tax Audit Report. The AO during the course of assessment proceedings noticed that th....
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....cted to recalculate the disallowance u/s. 14A after excluding the depreciation allowance from expenses as per Rule 8D. In the result, the ground of appeal is partly allowed." / Accordingly, the ld.CIT(A) directed the AO to recalculate the disallowance u/s 14A after excluding the depreciation allowance. 6. The ld. AR vehemently submitted before us that the order passed by the ld.CIT(A) was not correct as the assessee has already worked out the disallowance which was reasonable and no further disallowance was called for. The ld counsel of the assessee also submitted that the neither AO nor CIT(A) recorded any findings as to the expenses which were incurred and related to exempt income with reference to the books of accounts. Under these....
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....expenses as relating to exempt income. We further find that the AO without recording any satisfaction with the reference to the books of accounts as regards the expenses attributable to exempt income made the additions of Rs. 15,11,000/- apart from the suo motto disallowance by the assessee of Rs. 9,00,907/-. In our opinion the disallowance as made by the assessee is reasonable and justified and no further disallowance without pointing out any defect in working of the assessee of the said disallowance with reference to the books of accounts. Moreover the case of the assessee is fully and squarely covered by the decision of the Tribunal in DSP Adiko Holdings Pvt. Ltd(supra) wherein an identical issue has been decided in favour of the assesse....
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....of the considered view that a reasonable allocation of expenditure has to be made which can be attributed to the income which is chargeable to tax particularly bank interest income of Rs. 28.50 crores as against dividend income of Rs. 12.46 crores (approximately). Considering the facts and circumstances of the case, we are of the considered view that expenditure of Rs. 7,21,927/- as worked out by assessee, the details of which are mentioned by AO at page 2 of the assessment order, is reasonable to make disallowance u/s 14A with Rule 8D. Accordingly, we restrict the disallowance to Rs. 7,21,927/- by reversing the orders of authorities below and allow the grounds of appeal taken by assessee. Hence, the grounds of appeal taken by assessee are ....