2018 (10) TMI 1773

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....hri George George K, JM Revenue by : Smt.A.S.Bindhu, Sr.DR Assessee by : Sri.R.Srinivasan, CA ORDER George George K.,  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. The relevant assessment years are 2008-2....

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....e 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 made u/s 14A of the I.T.Act r.w. rule 8D(2). The....

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....fficer 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 huge investments are made which is given rise to....

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....re 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 the I.T.Rules. It is the duty of the assessee to pr....