ITAT confirms disallowance u/s. 14A computed under rule 8D despite no interest payment

Assessing Officer made addition of Rs.2,56,019/-, u/s 14A of the I.T. Act, 1961 read with Rule 8D of the I.T. Rules, 1962, against which assessee preferred appeal. The authorized representative of the assessee vide written submission dated 04.10.2011 has argued as under: “During the year under consideration the appellant received dividend income on surplus funds invested with various mutual funds through Citibank who acted as investment adviser with no cost to the appellant company. The dividends were directly credited to the bank account of the appellant electronically by ECS. No interest w...