2018 (4) TMI 1804

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.... Dr.B.R.R.Kumar, A.M. : The present appeal has been filed by the Revenue against the order of the Ld. CIT(A)-2, Ludhiana dt. 09/08/2017. 2. The Revenue has raised only one ground in this appeal which reads as under: 1. Whether upon facts and circumstances of the case, the Ld. CIT(A) was justified in deleting the disallowance under section 14A of the Income Tax Act, 1961, r.w. Rule ....

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....8D have a role of automatic application and the provisions are mandatory irrespective of the income earned or not out of the investments. Once the investments are made the assessee must have incurred expenses for such an activity. 6. The Ld. AR argued that in any case the disallowance cannot exceed the tax free income earned. 7. We have heard the ld. Representatives of both the parties and p....

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....&H). We do not find ourselves in agreement with the proposition that the Rule 8D of the Rules being mandatory, disallowance as per Rule 8D has be made even in cases where no tax free income has ,ed or where tax free income earned is lesser than the nt computed as per Rule 8D of the Rules. In our w, the proposition laid down by various High Courts as mentioned hereinabove is applicable in the prese....