TMI Blog2023 (2) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... f the fact that the disallowance made u/s. 14A r.w.r 8D is much in excess of the exempt income, we direct the AO to restrict the disallowance u/s. 14 r.w.r 8D to the extent of exempt income earned by the assessee. Before us, though the assessee has stated that it has earned exempt tax free dividend income of Rs. 8.81 lacs but we find that there is no finding by the lower authorities of the exempt income earned by the assessee. AO is therefore directed to work out the disallowance u/s. 14A r.w.r 8D after considering the submissions of the assessee with respect to the exempt income earned and in accordance with law. Decided in favour of assessee for statistical purposes. - ITA.No.3608/Del./2018 & 3607/Del./2018 - - - Dated:- 16-1-2023 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at Rs. 13,58,27,310/- inter alia by disallowing Rs. 1,77,99,597/- u/s. 14A r.w.r 8D. 2.2. Aggrieved by the order of the A.O, the assessee carried the matter in appeal before the Ld. CIT(A), who upheld the order of the AO. Aggrieved by the Order of the Ld. CIT(A), the assessee is now in appeal and has raised the following grounds : 1. That the Ld. CIT (A) -35 on the facts circumstances of the case and in law, has erred in upholding the disallowance of Rs. 1,77,99,597/- made u/s 14A of the Income Tax Act read with Rule 8D of Income Tax Rules. 2. That the ld. CIT (A) has wrongly interpreted the decision of Hon'ble Supreme Court in the case of M/s. Maxopp Investments Pt Ltd and confirmed the total disallowance calculated b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free dividend of Rs. 8.81 lacs and therefore in view of the decision rendered of Hon ble Delhi High Court in the case of Joint Investments Pvt. Ltd. vs CIT (372 ITR 694) (Del.) and other decisions, the disallowance u/s. 14A r.w.r 8D be restricted to the exempt income. He therefore submitted that the matter may be remitted back to the file of AO with the direction to restrict the disallowance u/s. 14A to the extent of tax free income earned by the assessee. 8. Learned DR on the other hand supported the order of lower authorities. 9. We have heard the rival submissions and perused the material available on record. The issue in the present grounds is with respect to the disallowance u/s. 14A r.w.r 8D of the Act. Before us it is the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for statistical purposes. 10. In the result, appeal of the assessee ITA.No.3068/Del./2018 for the A.Y. 2014-15 is allowed for statistical purposes. ITA.No.3607/Del./2018 A.Y. 2013-14: 11. Before us, both the parties have admitted that the facts of the case for A.Y. 2013-14 are identical to that of A.Y. 2014-15 except for the year and amount involved. We have hereinabove for the reasons stated, have allowed the ground of the assessee and restored the issue to the file of AO. Since the facts are identical in the present appeal, therefore, following the reasons stated hereinabove while deciding ITA.No.3608/Del./2018 for the A.Y. 2014-15 and for similar reasons, we restore the matter to the file of A.O. to compute the disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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