ACIT Vs. BEDMUTHA INDUSTRIES LTD.

JUDGEMENT

(1.) THIS appeal filed by the Revenue is directed against the order dated 25 -03 -2013 of the CIT(A) -I, Nashik relating to Assessment Year 2009 -10.

(2.) GROUND of appeal No. 1 by the Revenue reads as under:

(3.) BASED on the arguments advanced by the assessee the Ld. CIT(A) deleted the disallowance made by the AO u/s. 14A r.w. Rule 8D. While doing so, he observed that the AO has not brought on record the proximate relationship between the expenses disallowed by him and the tax exempt investment. The assessee has enough interest free funds to make investment giving rise to tax exempt income. Further, the AO has not brought on record the satisfaction regarding the incorrectness of the claim of the assessee. He accordingly held that the disallowance of Rs. 66,565/ - was not correct.