2014 (8) TMI 1090

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....evenue by : Shri R.A. Pant ORDER PER AMIT SHUKLA, J.M. The present appeal is preferred by the assessee, challenging the impugned order dated 28th May 2012, passed by the learned Commissioner (Appeals)-VIII, Mumbai, for the quantum of assessment passed under section 143(3) of the Income Tax Act, 1961 (for short "the Act") for the assessment year 2009-10. 2. This appeal is time barred by....

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....ebited in the Profit & Loss account are entirely for the business purpose. The Assessing Officer rejected the assessee's contention and held that rule 8D is to be applied and accordingly he disallowed 0.5% by taking the average value of the investment, which worked out to Rs. 15,89,295. 5. Before the learned Commissioner (Appeals), it was submitted that before invoking the provisions of rule 8D....

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....s not made any effort for acquiring the shares. The mutual funds too were invested in the earlier years. Thus, without attributing any expenses for the purpose of dividend income of Rs. 26,310, no disallowance can be made on account of administrative expenses by applying rule 8D. The condition precedent under sub-section (2) of section 14, has not been fulfilled in by the Assessing Officer. Thus, ....

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....on 31st March 2009, the mutual funds were not appearing in the Balance Sheet. Thus, no effort was made or any time was consumed for making any analysis of the investment which has resulted into exempt income of Rs. 26,310, by way of dividend. The assessee has already disallowed the sum of Rs. 1,200 on account of demat charges which is sufficient and directly attributable to the exempt income. Unde....