TaxTMI 
TaxTMI 
2017 (3) TMI 530
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....er passed by CIT(A)-2, Hyderabad and it pertains to the A.Y. 2009-2010. The following grounds were urged before the Tribunal. 1. "The CIT(A) erred in confirming the addition of Rs. 14,90,799 u/s14A of the Income Act,1961 read with Rule 8D (2) i.e., 0.5 % of the average investment. The assessee made investment in Group Companies and most of the same are brought forward from earlier years. No activ....
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....ared total income of Rs. 1.04 crores. During the course of assessment proceedings, the A.O. noticed that the assessee made some investments in quoted and unquoted shares and earned dividend income. According to him, provisions of section 14A would be applicable and some expenditure has to be disallowed under Rule 8D of I.T. Rules read with section 14A of the I.T. Act. In response thereto, the asse....
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.... as per Rule 8D(2)(iii) is in accordance with law. 4. Aggrieved, assessee is in appeal before the Tribunal. Learned Counsel for the Assessee submitted that the investments in group companies was made in earlier years and most of such investments were brought forward from earlier years and no activity was involved in this year and hence no expenditure is attributable to the same. He further conten....
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....t the findings of CIT(A). Therefore, we hold that disallowance on that count is not warranted. This leaves us with the subsidiary issue i.e., administrative expenditure. In the case of M/s. Daga Global Chemicals Pvt. Ltd., (supra), the ITAT, Mumbai Bench observed that disallowance under section 14A read with Rule 8D cannot exceed the exempt income. No other case law was placed before me wherein a ....