TMI Blog2020 (8) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... no such approval or conversion of the case from limited scrutiny to complete scrutiny was shown. Undisputedly, case of the assessee was for limited scrutiny and the reasons for picking up of the case of assessee under limited scrutiny does not include the disallowance of expenditure u/s. 14A of the Act, hence, we cannot uphold the disallowance made by the AO and confirmed by the Ld. CIT(A). In the result, we direct the Assessing Officer to delete the disallowance made u/s. 14A of the Act read with Rule 8D - Decided in favour of assessee. - ITA NO. 643/DEL/2020 - - - Dated:- 26-8-2020 - Shri H.S. Sidhu, Judicial Member And (Through Video Conference) Shri Prashant Maharishi, Accountant Member Assessee by Sh. Rahul Khare, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned dividend income of ₹ 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 debited total expenditure in Profit Loss Account of only ₹ 9,20,749/- out of which a sum of ₹ 8,17,707/- is income tax, service tax, stamp duty and Security Transaction Tax (STT). Therefore, the assessee has incurred and claimed the expenditure of ₹ 1,03,042/- only. Out of this expenditure, ₹ 77,771/- are general expenditure and ₹ 25,271/- are DMAT charges. Assessee submitted that it has not claimed any expenditure which has yielded the exempt income. He submitted that security transaction tax has not been claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08. Ld. DR 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 orders of the lower authorities. In the present case, the case of the assessee was picked up for limited scrutiny for the reasons stated above. The reasons did not speak about any disallowance of expenditure u/s. 14A of the Act. If the AO wanted to go beyond the reasons of the limited scrutiny, then he should have invoked the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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