2011 (3) TMI 1616

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....r For the Respondent : R. S. Srivastav ORDER R. V. Easwar (President) The assessee in this appeal is a private limited company engaged in stock broking, investment banking and trading in securities. The appeal relates to the assessment year 2004-05 and arises out of the assessment order dated 28th December 2006 passed under section 143(3) of the Income Tax Act, 1961. 2. The first gr....

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....gh. It was submitted that the entire dividend was received under a single dividend warrant and no extra expenditure had to be incurred by the assessee. Reliance was placed on the order of the "L" Bench of the Tribunal, Mumbai, in ITA No: 3684/Mum/2005, dated 29th October 2010, for the assessment year 2001-02. On a careful consideration of the matter in the light of the order cited above, we find f....

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....he Hon'ble Bombay High Court in the case of Godrej and Boyce Mfg. Co. Ltd. vs. DCIT (2010) 328 ITR 81 (Bom), where it has been held that while invoking section 14A, the income tax authorities have to be reasonable. We are therefore of the view that a disallowance of Rs. 2,00,000/- would meet the requirements of the case. We accordingly reduce the disallowance from Rs. 20,22,077/- to Rs. 2,00,000/-....