2021 (10) TMI 438

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....ent by: Shri Bharat Andhle, DR ORDER PER MAHAVIR SINGH, VP: This appeal filed the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-8, Mumbai [in short CIT(A)], in Appeal No. CIT(A)-8/IT-38/2017-18 vide order dated 10.07.2019. The Assessment was framed by the Dy. Commissioner of Income Tax, Circle 3(3)(1), Mumbai (in short 'DCIT/ AO') for the A.Y. 2015-16 vide o....

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....e 8D of the Income-tax Rules, 1962 at Rs. 26,35,031/-. 1.2 It is submitted that no part of interest expenditure is to be disallowed as it has direct nexus with interest income. It is submitted that the disallowance under Section 14A of the Act computed by the Learned Assessing Officer and confirmed by the CJT(A) is excessive, unreasonable and unwarranted. 1.3 It is submitted that....

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....ssessee preferred the appeal before CIT(A). The CIT(A) confirmed the action of the Assessing Officer. Aggrieved, assessee came in appeal before Tribunal. 4. We noted from the details filed by the assessee and the audited accounts of the assessee that the assessee has sufficient own funds in the form of share capital and reserves and surplus amounting to Rs. 16,02,67,705/- as on 31.03.2015 as....

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....cts. Hence, we are of the view that once the assessee has own funds more than the investment, no disallowance under Rule 8D(2)(ii) of the Rules can be made unless and until the Assessing Officer has able to prove the direct nexus. Hence, we delete the disallowance and reverse the orders of the lower authorities on this issue. 6. Coming to the second disallowance of administrative expenses made ....