TMI Blog2020 (3) TMI 1429X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance to be made by applying Rule 8D by taking into consideration only the investment made by the assessee in shares which actually fetched the exempt dividend income during the year under consideration. Ground No. 1 of the assessee s appeal is accordingly is thus partly allowed. Interest paid by the assessee on TDS - allowable deduction u/s 37(1) - HELD THAT:- Thus issue is squarely covered in favour of the assessee by the decision of Mukand Ltd. vs ITO [ 2019 (1) TMI 1348 - ITAT MUMBAI ] wherein it was held that interest paid on delayed payment of TDS is allowable as deduction u/s 37(1) of the Act. Respectfully following the said decision of the coordinate bench of this Tribunal, we delete the disallowance made by the AO a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with rule 8D of Income Tax Rules,1962. 3. The assessee in the present case is a company which is engaged in the business of dealership of passenger cars through sales and service outlets. The return of income for the year under consideration was filed by it on 29.09.2015 declaring a total income of Rs. 1,41,74,020/-. In the said return, dividend income of Rs. 11,50,924/- received during the year under consideration was claimed to be exempt by the assessee. A disallowance on account of expenses incurred in relation to the said exempt income was also offered by the assessee to the extent of Rs. 11,510/- being 1% of the exempt dividend income. Since the disallowance so offered was not supported by any books of accounts separately maintaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounting to Rs. 14,405/- on account of interest paid by the assessee on TDS is squarely covered in favour of the assessee by the decision of Mumbai Bench of this Tribunal in the case of Mukand Ltd. vs ITO 174 ITD 605 (Mum) wherein it was held that interest paid on delayed payment of TDS is allowable as deduction u/s 37(1) of the Act. Respectfully following the said decision of the coordinate bench of this Tribunal, we delete the disallowance made by the AO and confirmed by the Ld. CIT(A) on account of interest paid by the assessee on TDS and allow Ground No. 2 of assessee s appeal. 6. Ground No. 3 relates to the issue of disallowance of Rs. 68,46,336/- made by the AO and confirmed by the Ld. CIT(A) on account of entry tax liability. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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