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2018 (3) TMI 82 - AT - Income TaxDisallowance u/s 14A - Held that:- It is a settled law that the disallowance cannot be more than exempt income. The Hon’ble High Court decision in case of CIT Vs. Sam Global Securities Ltd. (2013 (9) TMI 876 - DELHI HIGH COURT) held that the disallowance cannot be more than exempt income. The computation of the income was before the Assessing Officer as well as CIT(A) and the same should have been taken into consideration by the Revenue authority and appellate authority. In present assessee’s case, the assessee has demonstrated that the assessee has not incurred any expenses to earn a dividend income in this particular Assessment Year and the Assessing Officer did not find any ambiguity regarding any expenditure directly or indirectly attributable to the investment made by the assessee. AO as well as the CIT(A) both have ignored this fact. Hence, the additional ground raised by the assessee is allowed. DR relied on various decisions and submitted that the assessed income cannot be below the return income especially when assessee has computed disallowance suo moto and paid tax in self assessment. The Ld. AR could not controvert the aove contentions of the Ld. DR. We therefore, direct the Assessing Officer to take congnizance of the same and accordingly compute the income of the assessee - Decided in favour of assessee for statistical purpose
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