TMI Blog2016 (11) TMI 1652X X X X Extracts X X X X X X X X Extracts X X X X ..... f total income. So going by the plain language of the section it could be safely concluded that the legislature intended only to disallow the expenditure that were incurred for earning exempt income. The legislature never intended to disallow the expenditure which is more than the exempt income derived by the assessee. We also draw support from the decision of the Hon ble Delhi High Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kol dated 25.05.2016. Assessment was framed by ITO, Wd- 7(4), Kolkata u/s. 143(3) of the Income tax Act, 1961 (hereinafter referred to as the Act ) for AY 2012-13 vide his order dated 24.02.2015. 2. The only issue to be decided in this appeal of assessee is as to whether the disallowance u/s. 14A of the Act could exceed the exempt income derived by the assessee. 2.1. The brief f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the assessing officer to recomputed disallowance under section 14A read with rule 8D(2)(iii) at the rate of 0.50% of average value of only those investments that yielded exempted income, without giving a direction that such disallowance of expenditure cannot exceed the amount of exempt income i.e. ₹ 102/-. 2.3. None appeared on behalf of the assessee. The Ld. DR vehemently argue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion it could be safely concluded that the legislature intended only to disallow the expenditure that were incurred for earning exempt income. The legislature never intended to disallow the expenditure which is more than the exempt income derived by the assessee. We also draw support from the decision of the Hon ble Delhi High Court in the case of Joint Investments Pvt. Ltd. Vs. CIT reported in (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
