2017 (11) TMI 1954

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..... S. Vijayaprabha, JCIT. ORDER PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER Assessee in this appeal is aggrieved on a disallowance made u/s.14A of the Income Tax Act, 1961 r.w.r 8D(2)(ii) of the Income Tax Rules, 1962. 2. Ld. Counsel for the assessee at the outset submitted that total dividend income claimed as exempt was only Rs. 1,41,447/-. As per the ld. Authorised Representative even if any disa .....

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..... perused the orders of the authorities below. It is not disputed that exempt income claimed by the assessee was only Rs. 1,41,447/-. Disallowance made by the ld. Assessing Officer u/s.14A r.w.r 8D came to Rs. 3,36,249/-. The Hon'ble Delhi High Court in the case of Joint Investment P. Ltd (supra) held as under at para 9 of its judgment. ''9. In the present case, the AO has not firstly disclosed .....

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..... that the entire tax exempt income is to be disallowed. The window for disallowance is indicated in Section 14A, and is only to the extent of disallowing expenditure "incurred by the assessee in relation to the tax exempt income". This proportion or portion of the tax exempt income surely cannot swallow the entire amount as has happened in this case''. Hon'ble Jurisdictional High Court in the cas .....

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