TaxTMI 
TaxTMI 
2015 (4) TMI 1248
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....A of the Act with reference to investment in partnership firm. The reasons given by him for doing so are wrong and contrary to the facts of the case and against the provisions of law. (ii) The Ld. CIT(A)/Ld AO ought to have held that provisions of section 14A of the Act are not applicable to investments made in partnership firm as income there from is not exempt ;but tax paid. (iii) The Ld. CIT(A)/Ld AO ought to have considered that no expenses are incurred for earning the exempt income or maintain the investments and hence no disallowance u/s 14A is required to be done." 2. The brief facts of the case are that, assessee company is engaged in the business of trading of various items, investment and financing. From the computation of in....
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.... Rule 8D and confirmed the disallowance without considering the assessee's submission. This is evident from the following finding given by the Ld. CIT(A). "I have considered the AO's order as well as appellant AR's submissions. Having considered both, I find that the AO has applied the jurisdictional High Court decision I the case of M/s. Godrej & Boyce Mfg. Co. Ltd. while making the disallowance. As the jurisdictional High Court has held that Rule 8D is applicable from A.Y. 2008-09 onward. It is also the fact that the appellant company has got substantial exempt income which has been mentioned by the AO in para 5.1 of the order. I view of the same and taking note of provisions of section 14A of the Act, I am of the considered view that t....
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....upon the order of the Ld. CIT(A). 6. We have heard the rival submissions and also perused the relevant material placed on record. As discussed above, the assessee has already offered disallowance of an amount of Rs. 1,65,43,645/- for allocating the indirect expenses under Rule 8D. Once, the assessee has attributed the expenses for the purpose of disallowance, then it is incumbent upon the Assessing Officer to examine the correctness of such a claim of expenditure and if, having regard to the accounts of the assessee he is not satisfied to such correctness of the claim, then he can proceed to determine the amount of expenditure incurred which can be said to be attributable for the earning of exempt income. This is the mandate of law under s....