2020 (8) TMI 829

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ER H.S. Sidhu, 01. This appeal is filed by the Assessee - Uday Punj (HUF) against the order of the Ld. CIT(A)-11, New Delhi dated 15.01.2020 for the assessment year 2016-17 wherein the appeal filed by the assessee against the order of the ITO, Ward 32(2), New Delhi passed u/s. 143(3) of the I.T. Act, 1961 on 29.12.2018 making the addition of Rs. 28,64,419/- u/s. 14A of the Act read with Rule 8 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ve) transactions are duly disclosed. 04. Subsequently, notice u/s. 143(2) of the I.T. Act was issued on 24.07.2017. 05. During the course of assessment proceedings, the AO observed that assessee has earned dividend income of Rs. 14,04,831/- and assessee was asked that why disallowance u/s. 14A of the Act should not be made. The assessee explained vide letter dated 18.12.2018 that assessee has de .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... er, the Ld. AO applied the Rule 8D and found that assessee himself has disallowed the STT paid of Rs. 86,735/-, AO calculated disallowance of Rs. 28,64,419/-. This disallowance was made u/s 14A of the Act and assessment order was passed on 29.12.2018 determining the total income of the assessee Rs. 38,83,389/- against the returned income of Rs. 10,18,970/-. 06. The assessee preferred appeal befor .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... supported the order of the AO and submitted that the reasons for limited scrutiny included for investment and income relating to securities are duly disclosed or not. Therefore, disallowance u/s. 14A is part of the reasons. Even otherwise, he submitted that there is no infirmity in the working of disallowance made by the AO. 09. We have carefully considered the rival contentions and perused the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... T(A). In the result, we direct the Assessing Officer to delete the disallowance of Rs. 28,64,419/- made u/s. 14A of the Act read with Rule 8D. The orders of the lower authorities are reversed. The solitary ground of the appeal of the assesee is allowed. 10. In the result, the Assessee's Appeal is allowed.  The decision is pronounced on 26.08.2020.
Case laws, Decisions, Judgements, Order .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X