TMI Blog2023 (1) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : Shri. D. Hema Bhupal, JCIT For the Respondent : Shri. D. Palanivel, Advocate ORDER PER G. MANJUNATHA, ACCOUNTANT MEMBER: This appeal filed by the Revenue is directed against the order passed by the learned Commissioner of Income Tax (Appeals)-13, Chennai, dated 23.06.2017 and pertains to assessment year 2011-12. 2. The Revenue has raised the following grounds of appeal: 1. The order of the learned CIT(A) is contrary to law and facts and circumstances of the case. 2.1 The ld.CIT(A) erred in directing the Assessing Officer to restrict the disallowance u/s 14A to the extent of dividend income declared relying on the decision of t Hon'ble Madras High Court in the case of Mis. Redingt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee's claim as there is no provision in section 14A to restrict the disallowance to the exempt income declared by the assessee. 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT (A) may be set aside and that of the Assessing Officer be restored. 3. The brief facts of the case are that, the assessee company is engaged in the business of software analysis, design and development, filed its return of income for the assessment year 2011-12 on 30.09.2011, admitting total income of Rs. 150,46,75,014/-. During the course of assessment proceedings, the AO noticed that the assessee has made huge investment in shares and securities and also earned dividend incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of Madras in the case of M/s. Redington India Ltd vs ACIT, (supra) has held that disallowance contemplated u/s. 14A of the Act cannot exceed exempt income. 6. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. The law is well settled by the decisions of various courts including the Hon ble High Court of Madras in the case of M/s. Redington India Ltd vs ACIT, (supra), where it has been held that in absence of exempt income for relevant assessment year, no disallowance could be made u/s. 14A of the Act towards expenditure relatable to exempt income. The Hon ble Supreme Court had also considered an identical issue in the case of CIT vs M/s. Chettinad Logistics Pvt. L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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