2014 (7) TMI 306

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....r section 14A of Rs. 5,36,442/- as against Rs. 2,11,842/- calculated by the Tax Auditor in Tax Audit Report and offered in computation of income by the appellant. 2. On the facts and in the circumstances of the case and in law, the CIT (A) erred in confirming the action of AO for invoking Rule 8D of IT Rules, without appreciating that AO has not recorded any dissatisfaction on the correctness of the claim of the appellant as per section 14A(2) of the Act. 3. On the facts and in the circumstances of the case and in law, the CIT (A) erred in not following the decision of the jurisdictional High Court in the case of Godrej & Boyce Manufacturing Co Ltd 328 ITR 81 (Bom), wherein it was held that Rule 8D of the Income Tax Rules is only appl....

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....assessee mentioned that the only issue emanating from the above grounds is the disallowance of u/s 14A made by the AO and confirmed by the CIT (A). In this regard, Ld Counsel brought our attention to the judgment of the Hon'ble Bombay High Court in the case of CIT vs. M/s. Godrej Agrovet Ltd vide Income Tax Appeal No. 934 of 2011, dated 8.1.2013 and mentioned that the in view of the above mentioned judgment of the, the ITAT has taken the view that the disallowance u/s 14A should be restricted to 2% of the dividend income. Ld Counsel also relied on various decisions of the ITAT, Kolkata Benches in support of his contention. 6. On the other hand, Ld DR relied on the orders of the Revenue Authorities. 7. We heard both the parties and per....