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2020 (7) TMI 333 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - HELD THAT:- Assessee has received dividend income of ₹ 1,80,717/- only. The Hon’ble Delhi High Court in the case of Joint Investment Pvt. Ltd. [2015 (3) TMI 155 - DELHI HIGH COURT] held that “the disallowance u/s 14A cannot be more than to that of the exempt income.” Since in the present case the dividend income earned by assessee is of ₹ 1,80,717/- which is claimed exempt under section 10(34) therefore, disallowance under section 14A read with Rule 8D should not exceed the exempt income. We, therefore, set aside the Orders of the authorities below and restrict the addition. Addition on account of loss in trading of stock option - AO confronted the Order of the SEBI to the assessee in which it was alleged that assessee had made losses in indulging in suspicious trades including reversal trades - HELD THAT:- In the present case, the A.O. / Ld. CIT(A) have not gone into the facts and material evidence on record and merely referring to the interim order of the SEBI and subsequent order have decided the issue against the assessee. Since in the case of Rakhi Trading Pvt. Ltd. [2018 (2) TMI 580 - SUPREME COURT] the issue under Income Tax Act was also not adjudicated upon, therefore, in our humble opinion the decision in the case of Rakhi Trading Pvt. Ltd., (supra), would not support the case of Revenue. In the absence of any investigation carried-out by the authorities below, we are of the view that assessee has been able to establish that assessee company has suffered genuine business loss as had also been suffered in earlier years, therefore, authorities below should not have disallowed the same against the assessee. In view of the above findings, we set aside the Orders of the authorities below and delete the entire addition. In the result, Ground No.1 of the appeal of Assessee is allowed.
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