9911796707
TMI Blog2021 (7) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... e present appeal has been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals)-152, in short 'Ld. CIT(A)', Mumbai, dated 19.06.19 for AY 2015-16. 2. The brief facts of the case are, assessee filed its return of income on 30.11.2014 declaring loss of Rs. 28,39,12,436/-. The return of income was processed under section 143(1) of the I.T. Act, 1961 (in short Act). The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be applicable where no dividend is received. However, in the given case assessee has earned exempt income of Rs. 5,26,516/- only and assessee itself has disallowed to the extent of Rs. 13,85,320/-. After considering the submissions of the assessee, AO rejected the contentions of the assessee and invoked rule 8D (2) of the IT Rules to disallow an amount of Rs. 28,47,860/-. 4. Aggrieved with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. Rs. 5,26,516/-. Although the appellant has sumo moto disallowed Rs. 13,85,320/- in its Return of Income. The appellant hereby prays that on the basis of the findings given by the learned CIT(A) in his order, stating that disallowance under section 14A cannot exceed dividend income, thus the disallowance under section 14A of the Act must be restricted of exempt/dividend income earned of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red the rival submissions and material placed on record. We notice that assessee had suo-moto disallowed an amount of Rs. 13,85,320/-, however assessee had earned exempt income of Rs. 5,26,516/-. After considering the submissions of the assessee, we are in agreement with the assessee based on the decisions of the Hon'ble High Court's that the disallowance under section 14A is restricted to exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of exempt income claimed by assessee at Rs. 13,17,233/-. We direct the Assessing Officer accordingly. 9. Therefore, respectfully following the above decision, we are inclined to direct the assessing officer to restrict the disallowance under section 14A to the extent of exempt income earned by the assessee. Accordingly ground raised by the assessee is allowed. 10. In the net result, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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