2016 (11) TMI 1527

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....tion 14Aof the Income Tax Act, 1961 (hereinafter referred to as "the Act") by applying Rule 8D of the Income Tax Rules, 1962. 3. The facts apropos to the issue are that the assessee is engaged in the business of few training and software sales. During the course of assessment proceedings, the Assessing Officer (AO) observed that the assessee has earned dividend income of Rs. 2,10,000/- from mutual fund which is exempt from tax. 3.1. It was also noted by the AO that the assessee holds investment in mutual funds of Rs. 2,30,78,589/- as on 31/033/2009 while the corresponding investment as on 31/03/2008 stands at Rs. 3,13,87,847/-. The AO found that the assessee has claimed interest expenditure amounting to Rs. 13,050/- which is allowable for....

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....SIP plan is in place. The Ld.AR further submitted that mutual funds Managers are deducting their fund management charges from the said mutual investments made. Thus, in the given facts, no further disallowance is called for. 9. The Ld.DR, on the other hand, relied on the order of the CIT(A). 10. We have carefully considered the rival submissions, perused the material available on record and gone through the orders of the authorities below. The solitary issue in the present appeal is disallowance of certain expenditure by resorting to section 14A of the Act. We find that averment made on behalf of the assessee that the own capital together with reserves held by the assessee are in excess of corresponding investment is supported by the bala....