2016 (11) TMI 1634

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....rounds of appeal :- "1. On the facts and in the circumstances of the case, the learned Commissioner of Income tax (Appeals) 4, Mumbai, erred in confirming the order of the Assessing Officer in respect of disallowance of expenses amounting to Rs. 1,31,209/- under section 14A r.w. Rule 8D of the Income tax Rules, 1962, particularly when the appellant has not incurred any expenses for earning exempted income and investment of Rs. 2,85,73,491/- is out of its own capital and free reserves of Rs. 8,37,07,557/-. 2. On the facts and in the circumstances of the case, the learned Commissioner of Income tax (Appeals) 4, Mumbai, erred in confirming the order of the Assessing Officer in respect of Shiv Sagar property amounting to Rs. 33,63,676/- i....

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.... assessee and noted that the Assessing Officer had correctly recorded his satisfaction about the incorrectness of the claim of assessee of not having incurred any expenditure in relation to the exempt income and, therefore, upheld the disallowance u/s 14A of the Act computed in terms of Rule 8D(2)(iii) of the Rules. 4. Before us also, the only plea of assessee is that the assessee has not incurred any expenditure in earning of the exempt income and, therefore, the disallowance is not justified. In our considered opinion, the Assessing Officer was justified in making the impugned disallowance because he was not satisfied, having regard to the accounts of the assessee, that no expenditure was incurred in relation to earning of the exempt in....