2018 (10) TMI 985

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....g the findings of the Ld. AO that the provisions of Sec 14A are applicable to the facts of the appellant when the AO has not given any finding why the disallowance of Rs. 3,30,594/- made by the appellant suo-moto is not acceptable. 2. The Ld. CIT(A) erred on facts and in law in confirming the disallowance of Rs. 12,18,970 made by the AO out of the Office Expenses incurred on the higher education of the son of a director treating these expenses as personal expenses when actually these expenses were incurred for the purpose of the business of the appellant. 3. The Ld. CIT(A) erred on facts and in law in confirming the disallowance of Rs. 63,835 made by the AO out of Business Promotion Expenses treating them as personal expenses when act....

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.... 12.18 Lacs represents expenditure incurred by assessee towards higher education expenses of the director's son namely Neeraj Anil Mutha. The said payment was made to Drexel University, Philadelphia and claimed as business expenditure on the understating that after completion of studies, the candidate shall come back and join the company. However, finding the same to be personal in nature in terms of Section 37(1), the same has been disallowed. 2.3 The last addition of Rs. 0.63 Lacs out of Business Promotion Expenses has been made since the same, in the opinion of Ld. AO, were personal expenditure. The details of the same have already been extracted at para-6.1 of the quantum assessment order. 3. Aggrieved, the assessee contested the same....

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.... while working out the said disallowance. The same is well in line with recent decision of Hon'ble Supreme Court rendered in Maxopp Investment Ltd. Vs CIT [12/02/2018 91 Taxmann.com 154]. Therefore, we find no reason to deviate from the stand of lower authorities so far as disallowance u/r 8D(2)(iii) is concerned. 5.2 Further, the interest disallowance u/r 8D(2)(ii) has already been set aside by Ld. first appellate authority to the file of Ld. AO to ascertain the factual matrix of assessee's submissions that interest expenditure pertained only to wind mill business carried out by the assessee. Since the same is factual in nature and set aside to Ld. AO, we see no reason to interfere with the same at this stage. Ground Number-1 stands dismi....