9911796707
TMI Blog2019 (10) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Assessment Year 2013-14. 2. The assessee, having business of real estate development and investment in land filed its return of income on 12.09.2013 declaring total income at Rs. 1,22,41,720/- for A.Y. 2013-14. Under scrutiny notice dated 03.09.2014 u/s 143(2) was served upon the assessee. It appears from the record that the assessee has shown Capital Gains at Rs. 46,47,759/- on sale of land. Interest income has been shown at Rs. 73,384/-. Total income has been shown at Rs. 1,22,41,720/- after claiming deduction of Rs. 1,21,045/- under Chapter - VIA of the Act. Agricultural income to the tune of Rs. 95,000/- was also shown by the assessee. A show-cause dated 18.12.2015 was served upon the assessee as to why disallowance u/s 14A shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned AO. 4. We have heard the rival contentions made by the respective parties, perused the relevant materials available on record we find in appeal, the Learned CIT(A) considered the following aspects: i. The appellant claimed that agriculture income of Rs. 95,000/- as exempt in his return of income. ii. No other income by way of share of profit, interest on capital or remuneration was received from any other firm by the assessee in the year under consideration. iii. Apart from the agriculture income of Rs. 95,000/-, the assessee did not have any other exempt income at all. iv. The Learned AO has erred in law in making disallowance u/s 14A exceeding exempt income itself. v. The assessee is having interest free funds at the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply the provision of Rule 8D for working out the amount of expenditure attributable to earning of such income or that the satisfaction must be recorded by specific findings or that there must be reasonable evidence to such that some expense in relation to exempt income has been incurred which is absent in this particular case on hand before us. The assessee's further contention that there is nothing to show that money borrowed for use of making these investment in partnership firm and thereby earning exempt income when mainly investments were made out of interest free funds, which is available with the assessee was also carefully considered by the Learned CIT(A). Finally, when the exempt income totaling to Rs. 95,000/-, the disallowance ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been argued that the disallowance u/s 14A cannot exceed the amount of exempt income as held by various Tribunals. I find that the Hon'ble Jurisdictional ITAT in the case of M/s K. Ratanchand & Co. Vs ITO, vide order dated 24.09.2015 contained in ITA No.2660/Ahd/2011 (A.Y. 2008-09) has held that disallowance u/s 14A r.w. Rule 8D cannot exceed the exempt dividend income. Similar view has been expressed by the Hon'ble Jurisdictional ITAT in the case of Jivan Tea Ltd Vs DCIT contained in ITA No.866/Ahd/2012 (A.Y. 2008-09), order dated 28.08.2014. Respectfully, following orders of Hon'ble Jurisdictional ITAT, which are binding on me, I hold that disallowance u/s 14A r.w. Rule 8D cannot exceed the amount of exempt income claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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