TaxTMI 
TaxTMI 
2017 (9) TMI 1406
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....e order of CIT(A) deleting the disallowance made by AO u/s 14A of the Act read with Rule 8D of the IT Rules, 1962 ('the Rules'). For this Revenue has raised following two grounds: - "1. "Whether on facts and in the circumstances of the case and in Law, the Ld. CIT(A) erred in restricting the disallowance of expenses u/s.14A @ 0.5% of the average investment amounting to Rs. 24,82,882/-, without establishing any nexus between investment in shares and assessee's own funds and without considering the specific provision of Rule SD of the IT rules." 2. "Whether on facts and in the circumstances of the case and in Law, the Ld. CIT(A) is right in directing that the amount of disallowance of expense4s u/s.14A to be added while computing book p....
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....ant has reduced from Rs. 2838.65 lakhs in F.Y.2008-09 to Rs. 1680.48 lakhs in F.Y.2009-10. Hence, respectfully following the decisions of Hon'ble ITAT in Appellant's own case in A.Y.2008-09 and 2009-10 I delete the disallowance of Rs. 59,57,113/made by the AO and direct the AO to accept the suo moto disallowance of Rs. 500,000/- made by the Appellant in its return of income as disallowance u/s 14A of the Act. This ground of appeal is thus allowed" 4. Now, before us, the learned Counsel for the assessee stated that the issue is covered by Tribunal's decision in assessee's own case for AY 2008-09 in ITA No. 5693/Mum/2011 and in ITA No. 3542/Mum/2013 for AY 2009-10. The learned Counsel for the assessee stated that there is no change i....
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....to the accounts of the assessee has observed that the assessee has not incurred any interest/indirect expenditure for earning of the exempt income. The balance sheet of the assessee reveals that the assessee had reserve and surplus of Rs. 2,69,82,76,106/- as on 31.03.08 as against the total investments of Rs. 69,33,10,403/-. The reserve and surplus investments of the assessee as on 31.03.06 was at Rs. 1,31,08,13,906/- and therefore there was an increase of about Rs. 138 crores in reserve and surplus during the year. The total investments of the assessee as on 31.03.07 was at Rs. 3,98,81,678/- which have increased to Rs. 69,33,10,403/- as on 31.03.08 and so there was the investment of Rs. 66 crore during the year under consideration. The loa....