TMI Blog2018 (2) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... RA, HON'BLE ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER Assessee by: Shri Sunil Moti Lala Department by : Shri Vidhyadhar O R D E R PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) 9, Mumbai dated 19.01.2016 for the Assessment Year 2010-11. The only issue in the appeal of the assessee is in respect of conformation of disallowance made u/s. 14A r.w. Rule 8D(2)(iii) of the I.T. Rules. 2. Learned Counsel for the assessee submits that assessee received dividend income of ₹.5,20,000/- during this Assessment Year and in the computation of income assessee himself disallowed ₹.6,15,628/- suo-motu tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividend income of ₹.5,20,000/- only. It is also an admitted fact that the assessee in its computation of income suo-motu disallowed ₹.6,15,628/- as expenses attributable for earning such dividend income. Therefore, as could be observed the assessee itself disallowed expenses more than the dividend income earned by the assessee and in such circumstances we are of the considered view that there should not be any further disallowance u/s. 14A r.w. Rule 8D of the I.T. Rules. 5. The Coordinate Bench in the case of M/s. Pest control India Pvt Ltd. v. DCIT in ITA.No. 5048/Mum/2016 by order dated 31.10.2017 held that disallowance u/s. 14A r.w. Rule 8D cannot exceed the exempt income observing as under: - 7. We have heard the ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Delhi High Court. 9. The Hon ble Delhi High Court in the case of Joint Investment Private Limited in ITA.No. 117/15 dated 25.02.2015 held that by no stretch of imagination can section 14A or Rule 8D be interpreted so as to mean that entire tax exempt income is to be disallowed. 10. Further, we find that considering the above two decisions the Coordinate Bench in the case of Sanghavi Exports International P. Ltd v. ACIT in ITA.No.3405/Mum/2015 dated 10.07.2017 held that disallowance should not be more than the dividend income by observing as under: - 4. We have perused the Assessment Order and find that the assessee earned exempt income of ₹ 1,70,000/- only during this Assessment Year and the Assessing Officer by invoking ..... X X X X Extracts X X X X X X X X Extracts X X X X
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