2023 (7) TMI 376

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....14A read with Rule 8D in as much as the assessee has not incurred any expenditure for earning exempt income. 2. The appellant says and submits that the assessee has offered during assessment proceedings Rs. 45,000 for disallowance. However, the AO has added Rs. 30,63,380 instead of Rs. 45,000 offered meaning by even if such expenses are disallowable than such expenses should not exceed Rs. 45,000. It is 0.5% of the average investment as per Rule 8D is not disallowable." 3. The assessee company is engaged in the business of trading and manufacturing of cosmetic goods. The return of income was filed by the assessee on 29.11.2014 declaring total loss of Rs. 44,92,207/-. The case was selected for scrutiny by issuing notice under Section 143(....

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....t as per Rule 8D. The Ld. A.R. relied upon the decision of Hon'ble Gujarat High Court in case of PCIT vs. Syntex Industries Ltd. 403 ITR 418 (Guj.) and the decision of the Tribunal in assessee's own case for A.Y. 2013-14 being ITA No. 845/Ahd/2018 dated 18.12.2019. 6. The Ld. D.R. submitted that the Assessing Officer has duly recorded satisfaction and further observation made investment in Mutual Funds is a strategic decision and top management is involved in taking such decision, therefore, the expenditure offered by the assessee of only one employee who devoted 10% time to manage the investment is inadequate. The Ld. D.R. further submitted that keeping track of the divided incomes declared and received by the company cannot be left only ....