TMI Blog2020 (2) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance under section 14A r.w.r. 8D of Income Tax Rules cannot exceed the amount of disallowance made by the assessee i.e. ₹ 29,35,81,617.00 in the income tax return. Accordingly, we delete the addition made by the AO in the case of the assessee which was subsequently confirmed by the ld. CIT(A). Similarly, we also confirm the deletion as made by the learned CIT-A in the appeal of the Revenue. Hence, the ground of appeal of the assessee is allowed whereas the ground of appeal of the Revenue is dismissed. - ITA No. 2617/Ahd/2017, 2806/Ahd/2017 (Assessment Year : 2013-14) - - - Dated:- 6-1-2020 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER Assessee by: Shri Vartik Chok ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g exempt income and both Ld.Assessing Officer and CIT(A) have not pointed out any discrepancy in the working adopted by appellant. 2. The appellant craves leave to add, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal. The Assessee has also raised the additional ground of appeal vide letter dated 9th September 2019 which reads as under: On the facts and in the circumstances of the case, following the ratio of Hon ble SC in the case of Pr CIT V State Bank of Patiala reported in (2018) 99 taxmann.com 286, the disallowance u/s.14A should not exceed the exempt income earned by assessee of ₹ 11,83,96,894/-. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rejected the working for the disallowance made by the assessee against the exempted income in pursuance to the provisions of section 14A of the Act. Thus the AO made the disallowance of the expenses against the exempted income as per the provisions of rule 8D of Income Tax Rule as detailed under: S. No. Particulars Amount (Rs.) 1. Direct expenses 2,151.00 2. Interest expenses 37,45,60,672.00 3. Administrative expenses 15,19,39,060.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eported in 45 taxmann.com 116 has held that the amount of disallowance under section 14A read with rule 8D cannot exceed the amount of the exempted income. The relevant extract of the order is reproduced as under: Section 14A(1) provides that for the purpose of computing total income under chapter IV, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. In the instant case, the Tribunal has recorded the finding of fact that the assessee did not make any claim for exemption of any income from payment of tax. It was on this basis that the Tribunal held that disallowance under section 14A could not be made. In the proces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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