2016 (3) TMI 1284

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....Act) PER RAJENDRA, AM Challenging the order dated 06.03.2013 of CIT(A)-12,Mumbai,the assessee had filed the present appeal. Assessee-company, engaged in the business of Trading and Investment, filed its return of income on 24.09.2009,declaring total income at Rs. 1.47 Crores. Later on a revised return was filed. The Assessing Officer (AO) completed the assessment ,u/s.143(3) of the Act, on 3....

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....of the administrative expenses had to be attributable to earning of the exempt income. Invoking the provisions of section 14A r.w. Rule 8D of the Income tax Rules,1962(Rules),he made a disallowance of Rs. 3.12 Crores. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority(FAA).Before him, it was argued that it was also engaged in the business ....

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....ade by the AO was more than the actual expenditure incurred by it. 4. After considering the submission of the assessee and the assessment order the FAA held that the provisions of section 14A were applicable to the case under consideration, that assessee was not able to prove that it had maintained separate accounts for earning taxable and the non-taxable income, that it could not be accepted t....

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....d mechanically applied provisions of Rule 8D.Disallowance u/s.14A could be made if the assessee claimed some expenditure against the exempt income. The reason behind the section 14A and Rule 8D is to deny double benefit to the assessee i.e. claiming exemption on one hand and claiming expenditure on the other. But it was never intended by the legislature that disallowance should be made in a routin....