2016 (1) TMI 1236

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....ant Member and Shri S. S. Godara, Judicial Member Revenue by: Shri Samir Vahil, Sr. D.R. Assessee by: Shri M.G. Patel, A.R. ORDER PER : S. S. GODARA, JUDICIAL MEMBER:- This is a batch of four cases. The assessee and Revenue have filed two cross appeals each i.e. ITA Nos. 1264 and 1283/Ahd/2012 for assessment year 2002-03 against the order dated 29-03-2012 passed by the CIT(A)-VIII, ....

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....50,85,863/- u/s.14A r.w. Rule 8D of the Income Tax Rules respectively. Both parties reiterate their respective pleadings in the course of hearing.  3. The assessee is an investment company. The state government holds the assessee-entity making share investments in various companies. Its gross receipts in the these two impugned assessment years are of Rs. 12,08,61,000/- and Rs. 40,54,52,000....

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....pute proportionate disallowance of expenditure forming subject matter of adjudication in assessee's appeals. This leaves both the parties aggrieved. 5. First, we come to Revenue's grievance seeking to invoke Rule 8D prior to assessment year 2008-09. It fails in rebutting hon'ble Bombay high court decision hereinabove holding Rule 8D of the Income Tax Rules to be applicable only from assessment ....

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....ts this disallowance in both assessment years. 7. We have heard rival contentions. There is no dispute between parties about facts and figures narrated hereinabove. The CIT(A) has invoked proportionate disallowance qua assessee's dividend incomes earned in the two impugned assessment years. There is no dispute that the assessee is already an investment company only deriving exempt income to the....