2018 (10) TMI 1773

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....x<br>Shri Chandra Poojari, AM & Shri George George K, JM Revenue by : Smt.A.S.Bindhu, Sr.DR Assessee by : Sri.R.Srinivasan, CA ORDER George George K., &nbsp;These are six appeals at the instance of the assessee and four appeals at the instance of the Revenue. All the appeals are directed against the consolidated order of the Commissioner of Income-tax (Appeals), dated 15.12.2017. Th....

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.... of the I.T.Act r.w.r. 8D of the I.T.Rules. The Assessing Officer invoked rule 8D(2)(ii) as well as rule 8D(2)(iii) of the I.T.Rules for making the disallowances. 4. Aggrieved by the assessment orders completed for the assessment years 2008-2009 to 2013-2014, the assessee preferred appeals before the first appellate authority. The CIT(A) passed a consolidated order confirming the disallowance m....

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....d perused the material on record. The Assessing Officer had made disallowance by invoking the provisions of section 14A of the I.T.Act r.w. rules 8D(2)(ii) and rules 8D(2)(iii) of the I.T.Rules. The disallowance made by invoking rule 8D(2)(iii) of the I.T.Rules is for administrative and common expenses when the assessee derives exempted income. In the instant case, in each of the assessment year's....

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....ncern and no part of the interest bearing funds were diverted for making investments which had yield exempted income. However, this particular contention of the assessee was not demonstrated neither before the Assessing Officer nor before the CIT(A). Admittedly, interest on borrowed funds used for business purposes cannot be computed for disallowance u/s 14A of the I.T.Act r.w. rule 8D(2)(ii) of t....