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2015 (11) TMI 1667 - ITAT DELHI

2015 (11) TMI 1667 - ITAT DELHI - TMI - Disallowance under section 14A computation - total exempt income earned by the present assessee is ₹ 13,35,040 against which an addition of ₹ 21,87,713 has been made by AO u/s 14A - Held that:- As noted in the case of Joint Investment (P) Ltd. vs CIT (2015 (3) TMI 155 - DELHI HIGH COURT) the disallowance u/s 14A should not exceed the exempt income. The Tribunal also noted that the Hon’ble Delhi high Court in the case of CIT vs Holcim India Pvt. .....

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hares of Apollo Tyres Ltd. on which such dividend income was earned. Hence, we direct the Assessing Officer that the disallowance u/s 14A be restricted to ₹ 11,53,752 (Rs. 13,35,040 – ₹ 1,81,388) and the remaining amount of disallowance is directed to be deleted. - Decided partly in favour of assessee. - I.T.A. No. 6586/Del/2013 - Dated:- 27-11-2015 - Chandra Mohan Garg (Judicial Member) And O. P. Kant (Accountant Member) For the Appellant : Manu K. Giri, Adv. For the Respondent : Ga .....

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e assessee company, thereby confirming the addition of ₹ 21,87,713/- made by the assessing officer u/s 14A of the Income Tax Act, resulting in addition to returned Income to that extent. 2. That the learned Commissioner of Income Tax (Appeals) erred in holding that disallowance under Rule 8D has been correctly worked out in accordance with the provisions of Rule 8D. 3. We have heard the rival submissions and carefully perused the relevant material placed on record. At the very outset, lear .....

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ounsel of the assessee has drawn our attention towards para 4 of the Tribunal order (supra). 4. Learned Departmental Representative strongly supported the orders of the authorities below, however, he fairly accepted that in the similar set of facts and circumstances, the amount of disallowance has been restricted to the exempt income. 5. Firstly, it would be appropriate to reproduce the relevant part of the order of the Tribunal (supra) which has been relied by the learned counsel of the assesse .....

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ase of CIT vs. Holcim India Pvt Ltd. (2014) 90 CCH 081-DEL-Hon'ble High Court , has held that there can be no disallowance u/s 14A in the absence of any exempt income. The rationale behind these judgments is that the amount of disallowance u/s 14A should not exceed the exempt income. Since the total exempt income in the instant case is ₹ 25,38,020/-, we direct that the disallowance u/s 14A be restricted to ₹ 18,01,968/- (Rs.25,38,020-Rs.7,36,052/-). The remaining amount of disall .....

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