TaxTMI 
TaxTMI 
2017 (9) TMI 1407
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on 30/11/2012, determining its income at Rs. 1.02 crores. 2. The assessee has filed an application for admitting additional evidences. It was stated that the ledger for mutual fund statement for dividend and LTCGs were required to be considered for deciding the first two Grounds of appeal, that those documents could not be produced before AO/First Appellate Authority (FAA) as same were not directed to be filed, that only after getting the order of FAA the assessee came to know that the departmental authorities had made additions to the income of the assessee without considering the basic facts, that other two documents were assessment orders for the subsequent A.s, that in those years the AO had not made any additions though the facts for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e case of Godrej and Boyce Manufacturing Company Ltd. (ITA No. 616 of 2010), he disallowed an amount of Rs. 34, 205/- under Rule 8D(2)(iii) of the Income Tax Rules, 1962 (Rules). 3.1. Aggrieved by the order of the AO, the assessee preferred an appeal before the FAA and made elaborate submissions. After considering the available material, he held that from the AY. 2008-09, Rule 8D was applicable, that the AO was free to compute the disallowance of expenditure as per the Rule in respect of the exempt income, that it also included the cases where the assessee had claimed that absolutely no expenditure had been incurred, that without incurring expenditure it was not possible to earn exempt income, that it wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the assessee does not claim any expenses against the exempt income, then no disallowance can be made. In short, the pre-condition for making any disallowance u/s.14A r.w. Rule 8D is incurring of expenditure for earning exempt income. As the assessee has not claimed any expenditure against the dividend income or other exempt income, so, in our opinion, the FAA was not justified in upholding the order of the AO. Respectfully, following the order of the Tribunal in the case of Daga Global Chemicals Private Ltd. (supra), we decide first ground of appeal in favour of the assessee. 4. Second ground is about disallowance made under the head electricity expenses of Rs. 1.90 lakhs. During the assessment proceedings, the AO found that t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....electricity expenses for office premises of assessee that he had disallowed the expenditure in respect of other premises i.e., (1) Juhu Scheme situated which was in the name of AR Killawala, that the assessee had nowhere stated that its office was at 1 Juhu Scheme. Finally, he held that electricity expenses claimed in respect of premises, other than the office premises of assessee had been rightly disallowed by AO. 4.2. Before us, the AR stated that electricity bills were in the name of the mother of one of the partner, that assessee had applied to the Reliance Energy for change in name, that the Road No. is same, that in new bill meter no. is given, that new bill contained new address ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....same were incurred wholly and exclusively for business purposes. He held that the nature of expenses were such that personal element could not be ruled out. He disallowed 20% of motor car expenses (Rs.49, 444/-), motor car depreciation (Rs. 80, 859/-), telephone expenses (Rs.37, 901/-). 5.1. After considering the submission of the assessee and the assessment order, the FAA, during the appellate proceedings, held that the assessee had relied upon certain case laws, that unless a specific defect was pointed out no disallowance could be made on ad hoc basis for any expendi - ture, that expenses incurred under the heads motor car and telephone had to be examined considering the logbooks and telephone call resisters. He ....