2016 (1) TMI 239

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....ut of properties and filed its return of income for the year under consideration. The Assessing Officer has completed the assessment under section 143(3) of the Income Tax Act, 1961 ["Act" in short] by assessing income from letting out of property under the head 'income from house property' as against 'income from business or profession'. 3. The assessee carried the matter in appeal before the ld. CIT(A) and the ld. CIT(A) by following the decision of the Tribunal for the assessment year 2008-09 in I.T.A. No. 1464/Mds/2011 order dated 06.02.2012, confirmed the order passed by the Assessing Officer. 4. On being aggrieved, the assessee is in appeal before the Tribunal. 5. The ld. Counsel for the assessee has submitted for the assessment ye....

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....has been reverted by the Hon'ble Supreme Court in the case of Chennai Properties and Investments Ltd. v. CIT (supra). Therefore, respectfully following the judgement of the Hon'ble Supreme Court, the appeal filed by the assessee is allowed. 8. The next issue is with regard to disallowance in respect of Rs. 1,30,649/- under section 14A read with Rule 8D. In the assessment order, the Assessing Officer has observed that the assessee has earned exempt dividend income of Rs. 50,611/-. The assessee has not admitted any expenses to earn the above dividend. The Assessing Officer has asked the assessee as to why the disallowance should not be made under section 14A r.w.r. 8D. The assessee in his letter dated 12.01.2013 has stated that "we have clai....

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.... in case of Joint Investments Pvt. Ltd. v. CIT (supra) decided the issue in favour of the assessee and the head-notes are as under: Income-Expenditure incurred in relation to income not includible in total income-Disallowance-Assessee was engaged in diverse investment activities and in the course of its business derived income from rent, sale of investments, dividend and interest-For AY 2009-10, assessee had reported a loss of specified amount-Assessee declared tax exempt income in the form of dividend to the tune of Rs. 48,90,000-Assessee volunteered Rs. 2,97,440 as attributable u/s14A for the purpose of disallowance-AO on the basis of his own understanding of Rule 8D of the Income Tax Rules disallowed the sum u/s 14A read with Rule 8DAs....