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2016 (1) TMI 239

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..... SUPREME COURT] thus income had to be treated as income from business and not as income from house property.- Decided in favour of assessee. Disallowance u/s 14A read with Rule 8D - Held that:- In the present case, the assessee has earned exempt dividend income of ₹ 50,611/-. The assessee has not admitted any expenses to earn the above dividend income. The Assessing Officer disallowed the expenses to the tune of ₹ 1,30,649/- by invoking section 14A r.w.r. 8D. By taking into consideration of the facts and circumstances of the present case and keeping in view of the above decision of the Hon’ble Delhi High Court in case of Joint Investments Pvt. Ltd. v. CIT [2015 (3) TMI 155 - DELHI HIGH COURT], we are of the opinion that the As .....

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..... ribunal. 5. The ld. Counsel for the assessee has submitted for the assessment year 2001-02, the ITAT in its order in I.T.A. No. 103/Mds/2005 dated 24.04.2007 and I.T.A. Nos. 387 388/Mds/2006 dated 22.09.2006, decided the issue in favour of the Revenue by following the decision of the Hon ble Jurisdictional High Court in the case of CIT v. Chennai Properties and Investments 266 ITR 685. The very same decision of the Hon ble Jurisdictional High Court has been reverted by the Hon ble Supreme Court in the case of Chennai Properties and Investments Ltd. v. CIT 373 ITR 673 and therefore, the ld. Counsel for the assessee has prayed that the same may be followed and the order of the ld. CIT(A) may be reverted. 6. On the other hand, the ld. .....

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..... section 14A r.w.r. 8D. The assessee in his letter dated 12.01.2013 has stated that we have claimed ₹ 34,513/-, the management fee paid to HDFC Asset Management Company Limited towards management of our investment portfolio. As the investment is out of internal accruals, question of invoking section 14A will not arise. However, the Assessing Officer has not accepted the reply given by the assessee and by invoking section 14A r.w.r. 8D, disallowed an amount of ₹ 1,30,649/-. 9. The assessee carried the matter in appeal before the ld. CIT(A) and the ld. CIT(A) confirmed the disallowance made by the Assessing Officer. 10. On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has .....

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..... llowance-AO on the basis of his own understanding of Rule 8D of the Income Tax Rules disallowed the sum u/s 14A read with Rule 8DAssessee claimed that the entire tax exempt income of ₹ 48,90,000 was lower than the disallowance-CIT(A) and ITAT upheld AO's order-Held, in case of CIT(A) v. Taikisha Engineering India Ltd., it was held by present court that in view of the peculiar wording of Section 14A (2) that computation or disallowance of the assessee, or claim that no expenditure was incurred for earning exempt income should be examined with reference to the accounts and only if the assessee's explanation was unsatisfactory, can the AO proceed further-In the present case, firstly it was not disclosed by the AO that the appella .....

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