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TMI Blog2020 (2) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... e-1(1)(1)/345/2016-17 dated 18/09/2017 arising in the assessment order passed under s. 143(3) of the Income Tax Act, 1961(hereinafter referred to as "the Act") dated 30/11/2016 relevant to Assessment Year (AY) 2013-14. In Assessee's appeal i.e. ITA No. 2617/AHD/2017 for AY 2013-14, the Assessee has raised the following grounds of appeal: (All the Grounds of appeal are independent of and without prejudice to each other) 1. On the facts and in the circumstances of the case, the learned CIT(A) erred in upholding disallowance of Rs. 1,38,04,106/- u/s.14A r.w.r.8D of the Act when no such disallowance was called for. 1.1 On the facts and in the circumstances of the case, the learned CIT(A) erred in restricting the disallowance u/s.14A r. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee's appeal bearing ITA No. 2617/AHD/2017 for the assessment year 2013-14. 3. The solitary issue raised by the assessee in the main and the additional ground of appeal is against the confirmation of the disallowance in part for Rs. 1,38,04,106 under the provisions of section 14A read with rule 8D of Income Tax Rules on account of interest expenses. 4. The facts in brief are that the assessee in the present case is a private limited company and engaged in the business of dealing/investment in shares, securities and mutual fund etc. The assessee in the year under consideration has declared exempted income amounting to Rs. 11,83,96,894 and made the disallowance under the provisions of section 14A of the Act against such income for Rs. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehemently supported the order of the respective authorities below to the extent favourable to them. 6. We have all the rival contentions of both the parties and perused the materials available on record. Admittedly, the exempted income declared by the assessee is of Rs. 11,83,96,894.00 only which is not in dispute. The Hon'ble Gujarat High Court in the case of CIT vs. Corrtech Energy Private Ltd reported 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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