TMI Blog2023 (6) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of the exempt income earned and not more than that. We are of the considered view that disallowances u/s.14A r.w.r. 8D is to be restricted only to the extent of the exempt income earned by the assessee during the impugned year. We, therefore, direct the A.O. to recompute the income of the assessee accordingly. Hence, the ground raised by the assessee is allowed. - ITA No. 3284/Mum/2022 - - - Dated:- 12-5-2023 - SHRI B R BASKARAN, AM AND MS. KAVITHA RAJAGOPAL, JM For the Assessee : Shri Ravikant S. Pathak For the Revenue : Shri Chetan M. Kacha ORDER Per Kavitha Rajagopal, J M: This appeal has been filed by assessee challenging the order of learned Commissioner of Income Tax (Appeals) ( ld.CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered while computing the disallowance u/s. 14A read with Rule 8D of the Act and, therefore, the same amounted to income chargeable to tax has escaped assessment. Assessment order dated 27.12.2018 was passed u/s.143(3) r.w.s. 147 of the Act and the AO had determined total income at Rs.9,10,06,662/-. 4. The assessee was in appeal before the ld. CIT(A) challenging the grounds of reopening and the addition/ disallowances made by the AO in reassessment proceedings. The actual exempt income earned by the assessee was Rs.7,29,565/- and accordingly, the assessee contended that the disallowance u/s. 14A should not exceed the exempt income. The ld. CIT(A), though accepted the above contentions in principle, yet restricted the disallowance to Rs.9, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee as being 20% of the fees paid to M/s. K. Right Management Solution Pvt. Ltd. The ld. DR further contended that since the assessee itself had agreed to the disallowance of Rs.9,60,000/-, the ground raised by the assessee does not hold merit. The ld. DR relied on the order of the ld. CIT(A). 8. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee had earned dividend income of Rs.7,29,565/- during the year under consideration and the same is reflected at note 15 of the financial statement under the head other income. The assessee is said to have disallowed Rs.9,60,000/- u/s.14A of the Act in its return of income which is stated to be 20% of fees paid by the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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