TMI Blog2017 (2) TMI 1508X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the assessee as exempt - Appeal filed by the assessee is partly allowed. - ITA No. 353/Del/2014 - - - Dated:- 17-2-2017 - SH. N. K. SAINI, AM AND SMT. BEENA PILLAI, JM For the Assessee : Sh. Manu K. Giri, Adv. For the Revenue : Sh. A. K. Sharma, Sr. DR ORDER Per N. K. Saini, AM: This is an appeal by the assessee against the order dated 22.10.2013 of ld. CIT-XI, New Delhi. 2. Following grounds have been raised in this appeal: 1. That the order passed by the learned Commissioner of Income Tax (Appeals) is bad in law. 2. That the learned Commissioner of Income Tax (Appeal), erred in rejecting assessee's contention that the disallowance under section 14A cannot exceed ₹ 15,22,277/- b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962 should not exceed the exempted income, the reliance was placed on the ratio laid down by the Hon ble Jurisdictional High Court in the case of CIT Vs Holcim India Pvt. Ltd. which has been followed by the ITAT in the aforesaid referred to order dated 27.11.2015. 5. In his rival submissions the ld. DR although supported the orders of the authorities below but could not controvert the aforesaid contention of the ld. Counsel for the assessee. 6. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it appears that the disallowance made by the AO is more than the exempted income claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel of the assessee which reads as follows:- 4. We have heard the rival submissions and perused the relevant material on record. It is observed that the total exempt income earned by the assessee is to the tune of ₹ 25.38 lac, against which an addition of ₹ 1.05 crore has been made. The Hon ble Delhi High Court in Joint Investment Pvt. Ltd. Vs. CIT, vide its judgment dated 25.2.2015, has held that the disallowance u/s 14A cannot exceed the amount of exempt income. The Hon ble Delhi High Court in the case of CIT vs. Holcim India Pvt Ltd. (2014) 90 CCH 081-DEL-Hon'ble High Court, has held that there can be no disallowance u/s 14A in the absence of any exempt income. The rationale behind these judgments is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the shares of Apollo Tyres Ltd. on which such dividend income was earned. Hence, we direct the Assessing Officer that the disallowance u/s 14A be restricted to ₹ 11,53,752 (₹ 13,35,040 ₹ 1,81,388) and the remaining amount of disallowance is directed to be deleted. 7. We, therefore, respectfully following the aforesaid referred to order dated 27.11.2015 in ITA No. 6586/Del/2013 for the assessment year 2009-10 in the case of M/s Global Capital Ltd., New Delhi Vs ACIT, Circle-12(1), New Delhi, direct the AO to make the disallowance to the extent of the income claimed by the assessee as exempt. 8. In the result, the appeal filed by the assessee is partly allowed. (Order Pronounced in the Court on 17/02/2017) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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