2019 (6) TMI 744

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....ssessee earned divided income of Rs. 12,54,296/- and disallowed the expenditure of Rs. 10,09,652/- in earning the said dividend income on its own. The Assessing Officer further added Rs. 62,62,079/- under Rule 8D(2)(ii) and Rule 8D(2)(iii) of the Rules. Before the CIT(A), it was contended by the assessee that the assessee invested from its own funds and disallowance made by the Assessing Officer under Rule 8D(2)(ii) is to be deleted. The CIT(A) examined the record, accounts of the assessee company and deleted the said expenditure. In respect of the disallowance under Rule 8D(2)(iii), the CIT(A) upheld the addition made by the Assessing Officer to the extent of Rs. 11,54,825/- whereas, in our opinion, it is reasonable taking into considering....

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....onformity with Rule 8D(2)(iii) though in appellant's opinion it produced manifestly unjust result. For the reasons set out therefore, the disallowance of administrative expenses made by the A.O under Rule 8D(2)(iii) of Rs. 11,54,825/- as made by the A.O is upheld, however, after considering the voluntary disallowance of administrative expenses of Rs. 10,09,652/- already made by the appellant, the disallowance is restricted to Rs. 1,45,173/-. The appellant gets relief to the tune of Rs. 61,16,905/-. These grounds are partly allowed." 4. In view of the above discussions made in the aforementioned paragraphs, we find no infirmity in the order of the CIT(A) and it is justified. Ground No.1 raised by the Revenue is dismissed. 5. Ground No.2 is....

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....u/s 2(24)(x) r.w.s. 36(1)(va). Thus, this ground is allowed." 7. In view of the above, we find no infirmity in the order of the CIT(A) and it is justified. Ground No.2 raised by the Revenue is dismissed. 8. Ground No.3 is relating to deletion of disallowance on account of foreign tour allowance and foreign tour expenses. 9. It is noted from the record that on perusal of the details of accounts under the head 'foreign tour allowance' and 'foreign tour expenses', the Assessing Officer show-caused the assessee to produce relevant details to ascertain how the foreign exchange purchased by the assessee was spent and whether such expenses can be considered as business expenses of the assessee. Further the Assessing Officer held that the assess....