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TMI Blog2020 (8) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... H, JUDICIAL MEMBER : Appellant, ITO, Ward 20 (2), New Delhi (hereinafter referred to as the 'assessee') by filing the present appeal sought to set aside the impugned order dated 21.04.2017 passed by the Commissioner of Income - tax (Appeals)-7, New Delhi qua the assessment year 2013-14 on the ground that :- "On the facts and under the circumstances of the case, the Ld. CIT (A) has erred in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceeded to make disallowance of Rs. 2,21,57,375/- on the ground that throughout the year, assessee had own funds under the share capital and reserve & surplus to the tune of Rs. 397/- crores whereas made investment during the year under assessment to the tune of Rs. 400 crores leading to the conclusion that remaining investment of Rs. 2.28 crores has been made from the borrowed funds bearing inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is also not in dispute that the assessee company has made suo moto disallowance of Rs. 1,69,625/- u/s 14A of the Act. It is also not in dispute that during the year under assessment, the assessee company has owned share capital and reserve & surplus to the tune of Rs. 397 crores as against the investment of Rs. 400 crores. 6. In the light of the aforesaid facts, ld. CIT (A) proceeded to restri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance u/s 14A cannot exceed the amount of dividend income. Respectfully following the decisions cited above and the order of the Ld. CIT(Appeals) quoted in para 3.3, the disallowance u/s 14A is restricted to Rs. 1 ,70,1511- i.e. to the extent of dividend income claimed as exempt. The AO is directed to delete the balance disallowance. This ground of appeal is ruled partly in favour of the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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