TMI Blog2020 (6) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of West Bengal Infrastructure Development [ 2015 (11) TMI 926 - ITAT KOLKATA] to come to the decision that disallowance u/s. 14A of the Act to be restricted to the amount of exempt income only and not at a higher figure. Therefore, we find no infirmity in the order of the Ld. CIT(A) and therefore, we confirm it. Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [ 2020 (5) TMI 359 - ITAT MUMBAI ] - ITA No.1610/Kol/2019 - - - Dated:- 5-6-2020 - Shri P.M. Jagtap, Vice President (KZ) And Shri A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T passed the order u/s. 263 of the Act with the following direction to the AO. In view of the facts and circumstances as well as the judicial decision relied on by the assessee in its submission, the impugned order u/s. 143(3) is therefore set aside u/s. 263 of the I. T. Act and the AO is directed to pass a speaking order after providing adequate opportunity of being heard to the assessee after proper verification of all the documents and conducting the enquiries, if required. 5. Thereafter, the AO in the reassessment proceedings issued notice to the assessee and in response to the said notice, the Ld. AR appeared and submissions were made. Pursuant to the order of Ld. Pr. CIT during the reassessment proceeding the AO observes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of facts and submission of the authorized representative of the appellate company as well as the assessment order framed in the light of the materials available on record before the assessing officer during the assessment proceedings. The AO had worked out the disallowance u/s. 14A of the I. T. Act read with Rule BD of the LT. Rules. As regards to disallowance of the expenses under rule 8D (i), these are direct expenses relating the earning of the exempt income. I agree with the view as taken by the AO in the matter. Keeping in view of above, in the absence of any cogent material evidence, I do not find any infirmity in the order of the assessing officer and the same is hereby upheld. In view of above, this part ground of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment Pvt. Ltd., Vs. CIT in ITA No. 117/2015 dated 25.02.2015 where the Court held that by no stretch of imagination can the disallowance u/s.14A exceed the amount of exempt income. Following the same identical view has been expressed by the jurisdictional ITAT, Kolkata in the cases of Patrex Vyapar Ltd Vs ITO (ITA No.1921/ Kol/2017) Babcock Borsig Ltd. - (472/Kol/2016) wherein it has been held that disallowance under. Section 14A cannot exceed the exempt income earned during the year. The ITAT, Bench B , Kolkata ITA No. 388/Kol/2008 in the case of West Bengal Infrastructure Development has held as under: 97 .. We are however of the view that the disallowance under Sec.14A of the Act cannot be in excess of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17 upheld the order of the ITAT holding that the amount of disallowance under section 14A could be restricted to amount of exempt Income only and not a higher figure. Considering the submissions of the AR of the appellant and by following the order of the Hon'ble Supreme Court as mentioned supra, I am of the view that the disallowances made by the AO under Section 14A Rule 8D in excess of the exempt income of the appellant is not justified and be restricted the tax-free income earned by the appellate. This ground of appeal is partly allowed. Aggrieved, revenue is in appeal before us. 7. We have heard rival submissions and gone through the facts and circumstances of the case. During the previous year relevant to this a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon ble Supreme court has upheld similar view of the Hon ble High court of Punjab Haryana in PCIT Vs. State Bank of Patiala (supra) and the Ld. CIT(A) has relied on the decision of the coordinate bench of this Tribunal in the case of West Bengal Infrastructure Development (supra) to come to the decision that disallowance u/s. 14A of the Act to be restricted to the amount of exempt income only and not at a higher figure. Therefore, we find no infirmity in the order of the Ld. CIT(A) and therefore, we confirm it. 8. Before parting, it is noted that the order is being pronounced after ninety (90) days of hearing. However, taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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