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TMI Blog2024 (5) TMI 1363X X X X Extracts X X X X X X X X Extracts X X X X ..... MAHARISHI, AM: 1. This appeal is filed by Quantum Advisors ESOP Trust (assessee /appellant) for A.Y. 2017-18, against the appellate order passed by the National Faceless Appeal Centre, Delhi [the learned CIT (A)] dated 17th October, 2023, wherein the appeal filed by the assessee against the assessment order passed under Section 143(3) on 26th December, 2019, by the ITO ward 2(4), Mumbai (the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be directed to delete the disallowance so made by him and to re-compute its total income accordingly. Without prejudice to the foregoing and even otherwise 1:4 The Commissioner of Income-tax (Appeals) has erred in not restricting the disallowance under Section 14A to extent of exempt income of Rs.3,00,000/-. 2:0 Re.: General: 2:1 The Appellant craves leave to add, alter, amend and/or substi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plans. The assessee has earned dividend income of Rs.3 lacs which is claimed as exempt under Section 10(34) of the Income-tax Act, 1961 (the Act). On that basis, the return of income was filed on 1st August, 2017, at a taxable income of Rs.34,21,630/-. As the assessee has earned exempt income and has debited total expenditure of Rs.28,43,443/-, including interest of Rs.25,98,082/-, the learned Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authorized Representative submitted that the disallowance under Section 14A of the Act cannot exceed the exempt income. He submits that exempt income earned by the assessee is merely about Rs. 3 lacs and therefore, disallowance made by the learned Assessing Officer of Rs.28.43 lacs is not sustainable. 7. The learned Departmental Representative supported the order of the lower authorities. 8. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. 372 ITR 97, has clearly held so. Further, Hon'ble Bombay High Court in case of HSBC Invest Direct (India) Ltd dated 4th February, 2019, has also held so that the disallowance under Section 14A of the Act cannot exceed the exempt income. Hon'ble Bombay High Court in case of M/S Nirved Traders Pvt. Ltd. (supra) dated 23rd April, 2019, has clearly held so. In view of this, ground no. 1.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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