EVEREST KANTO CYLINDER LTD. Vs. ACIT (LTU)

JUDGEMENT

(1.) THIS is an appeal filed by the assessee against the order passed u/s. 143(3) r.w.s. 144C(13) of the IT Act to give effect to the direction issued by the Dispute Resolution Panel (in short the 'DRP') for the assessment year 2008 -09, wherein following grounds have been taken by the assessee : -

(2.) ERRED in making adjustment of Rs. 2,47,07,596/ - on account of guarantee commission;

(3.) WE have considered rival contentions and found that disallowance under Rule 8D has been worked out by the AO on the total investment, which included investment made in mutual funds with growth scheme. Such mutual fund investment is required to be excluded while calculating disallowance under Rule 8D, since it is not generating any tax free income. The assessee has also filed copy of the scheme of UTI fixed maturity plan before us, according to which it is a growth oriented fund and not eligible for dividend. If we exclude the amount invested by the assessee in the growth plan, disallowance under Rule 8D @0.5% works out to be Rs. 1.39 lakhs. However, copy of scheme of UTI Fixed Maturity Plan was first time filed before Tribunal as an additional evidence along with application for admission of additional evidence dated 27 -2 -2014. We accept the additional evidence and matter is restored back to the file of AO for deciding afresh the quantum of disallowance keeping in view our above observations.