2016 (1) TMI 540

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....nd the cross objection pertain to the same assessee, are for the same assessment year, and were heard together, as a matter of convenience, we are disposing of these appeals and the cross objection by this consolidated order. 2. We will first take up the appeal filed by the assessee, i.e. ITA No. 2950/Ahd/11. 3. In the first ground of appeal, the assessee is aggrieved of learned CIT(A) upholding the disallowance under section 14A r.w.r. 8D, to the extent of Rs. 6,85,687. 4. So far as this grievance is concerned, only a few material facts are required to be taken note of. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has earned dividend income of Rs. 5,01,148 but has not offered any dis....

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....d Hon'ble jurisdictional High Court's judgment in the case of PCIT Vs India Gelatine & Chemicals Ltd (TA Nos 276 and 277 of 2015; judgment dated 27th April 2015), no part of the interest can be disallowed by invoking section 14A. The disallowance even under rule 8D must therefore remain restricted to the amount worked out under rule 8D(2)(iii), 0.5% of the average value of investments appearing in the balance sheet as on 31.3.2007 and 31.3.2008, which works out to Rs. 26,951. We, therefore, restrict the disallowance to Rs. 26,951 and delete the remaining disallowance. The assessee gets the relief accordingly. 7. Ground no. 1 is thus party allowed in the terms indicated above. 8. In ground no. 2, the assessee is aggrieved of learned CI....