TMI Blog2021 (7) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... d:- 22-4-2021 - SHRI SAKTIJI DEY, JM AND SHRI S. RIFAUR RAHMAN, AM Appellant by: Shri Fenil Bhat, AR Respondent by: Shri Gurbinder Singh, DR ORDER PER S. RIFAUR RAHMAN (ACCOUNTANT MEMBER): The 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 ₹ 28,39,12,436/ . The return of income was processed under section 143(1) of the I.T. Act, 1961 (in short Act). The case was selected for scrutiny under CASS. Accordingly, notice under section 143(2) and 142(1) of the Act were issued and ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is restricted to the amount of ₹ 13,85,320/ . 5. Aggrieved with the above order, assessee preferred an appeal before us raising the following grounds of appeal:- Ground 1: On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) ought to have restricted the disallowance under section 14A of the Act to the amount of exempt income earned during the year under consideration i.e. ₹ 5,26,516/-. Although the appellant has sumo moto disallowed ₹ 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 un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the short point of dispute is whether the disallowance under Rule 8D(2)(iii) is to be restricted to the extent of exempt income i.e. dividend income earned by assessee at ₹ 13,17,233/- or the disallowance as suo-moto computed by asessee at ₹ 5,86,52,973/-. Here, we have gone through the decision of Hon ble Supreme Court in the case of Maxopp Investments Ltd. (supra), wherein the 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 ₹ 5,86,52,973/- and restricted the disallowance to the extent of exempt income claimed by assessee at ₹ 13,17,233/-. We direct the Assessing Officer accordingly. 9. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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