TMI Blog2021 (2) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... arned by the assessee. Considering this proposition, the ld.CIT(A) has already restricted the disallowance to ₹ 4,87,675/-, hence, no interference is called for on this issue. This ground of revenue dismissed. - ITA. No. 2110/Ahd/2018 - - - Dated:- 12-2-2021 - SHRI RAJPAL YADAV , VICE-PRESIDENT AND SHRI PRADIPKUMAR KEDIA , ACCOUNTANT MEMBER Revenue by : Shri S.S. Shukla, Sr.DR Assessee by : None ORDER PER RAJPAL YADAV , VICE-PRESIDENT Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-2, Ahmedabad dated 18.7.2018 passed for the Asstt.Year 2015-16, vide which, the ld.CIT(A) has restricted the disallowance under section 14A of the Income Tax Act, 1961. 2. None appeared on behalf of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest income was ₹ 206,09,45,858/- against which interest expense was ₹ 99,13,34,126/-, therefore, net interest income was ₹ 106,96,11,732/-, which 2.08 times more than the last year. It was further submitted that out of total investment, 96.85% investment was made in the subsidiary company as a strategic investment, and the main object of the subsidiary was for financing housing project. An amount of ₹ 4,87,675/- was received as dividend from the subsidiary, which would not attract provisions of section 14A of the Act. It was also submitted that in any case the disallowance could not be exceeded more than the exempt income, as propounded in various authoritative judgments, and that similar claim for earlier years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the decision given by CIT(A) - 2, Ahmedabad in preceding year i.e. A. Y. 2014-15, the disallowance made by the AO with regard to the administrative and expenditures being 0.5% of the average investments invoking the Rule 8D(2)(iii) is confirmed to the extent of dividend income which is ₹ 4,87,675/-. In other words, the disallowance under section 14A amounting to ₹ 90,55,252/- is restricted to ₹ 4,87,675/-. Relief is granted for the balance disallowance. 6. It is pertinent to observe that issue in dispute is squarely covered by the decision of Hon ble jurisdictional high Court in the case of CIT Vs. Corrtech Energy Ltd., 372 ITR 97 (Guj) wherein it was held that maximum disallowance under section 14A could be made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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