9911796707
TMI Blog2021 (11) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... M : This appeal filed by the assessee pertaining to assessment year 2014-15 is directed against the order of Ld. CIT(A)-35, New Delhi dated 25.08.2017. The assessee has raised following solitary grounds of appeal:- 1. "That the learned Commissioner of Income Tax (Appeals)-35, New Delhi has erred both in law and on facts in sustaining the disallowance of Rs. 3,07,3071/- representing expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, prayed that disallowance made and sustained by the learned Commissioner of Income Tax (Appeals) may kindly be deleted and appeal of the appellant company be allowed." 2. The only effective ground raised by the assessee is against the disallowance made u/s 14A of the Income Tax Act, 1961 ("the Act") r.w.Rule 8D of the Income Tax Rules, 1962 ("the Rules") amounting to Rs. 3,07,307/-. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed as made by invoking the provision of section 14A of the Act. 5. Aggrieved against this, the assessee is in appeal before this Tribunal. 6. At the outset, Ld. Counsel for the assessee submitted that in this case, the assessee had earned a dividend income of Rs. 49,489/- only. Ld. Counsel for the assessee submitted that no disallowance could be made in excess of the exempt income. In su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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." Respectfully following the ratio laid down by the Hon'ble Delhi High Court, we direct the Assessing Officer to restrict the disallowance to the extent of exempt income of Rs. 49 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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