9911796707
TMI Blog2021 (1) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... T; 1. This appeal by assessee is arising out of the order of Commissioner of Income Tax (Appeals)-52, Mumbai [for short 'the ld. CIT(A)] in Appeal No. CIT(A)-52/IT-198/DCIT-CC-4(2)/17-18 order dated 26.03.2019. Assessment was framed by DCIT, Central Circle-4(2), Mumbai for the Assessment Year 2015-16 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act') vide his order dated 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thus the disallowance under section 14A of the Act must be restricted to Rs. 13,17,233/-. 3. We have heard rival contentions and gone through the facts and circumstances of this case. We noted that that the Assessing Officer while framing assessment has made disallowance by invoking the provisions of section 14A of the Act r.w.r 8D of the Income Tax Rules, 1962 (hereinafter 'the Rules'). The Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relied on the decision of Hon'ble Supreme Court in the case of Maxopp Investments Ltd. (91 Taxman.com 154) but CIT(A) noted that the assessee has itself made suo-moto disallowance of Rs. 5,86,52,973/- and the same has to be adopted for this the CIT(A) gave his in para-5.21 as under: "5.21. In view of the above discussion, the AO is accordingly directed to re-compute the disallowance u/s 14A as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Supreme Court has categorically held that the disallowance cannot exceed the exempt income. Hence, we delete the suo-moto disallowance made by assessee at Rs. 5,86,52,973/- and restricted the disallowance to the extent of exempt income claimed by assessee at Rs. 13,17,233/-. We direct the Assessing Officer accordingly. 7. In the result, appeal of assessee is allowed. Order pronounced i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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