2015 (11) TMI 1667

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....RDER Chandra Mohan Garg (Judicial Member) This appeal by the assessee has been directed against the order of the CIT(A)-XV, New Delhi dated 30.9.2013 in Appeal No.220/11-12/CIT(A)-XV for AY 2009-10. 2. The grounds raised by the assessee read as under:- "1. That the learned Commissioner of Income Tax (Appeal), erred in rejecting assessee's contention that the disallowance unde....

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....Finance (P) Ltd. vs DCIT and submitted that in the similar set of facts and circumstances, the Tribunal in the case of assessee's group company has directed that the disallowance u/s 14A should not exceed the exempt income and therefore, the disallowance was restricted to the exempt income. Learned counsel of the assessee has drawn our attention towards para 4 of the Tribunal order (supra). 4. ....

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....hat the disallowance u/s 14A cannot exceed the amount of exempt income. The Hon'ble Delhi High Court in the case of CIT vs. Holcim India Pvt Ltd. (2014) 90 CCH 081-DEL-Hon'ble High Court , has held that there can be no disallowance u/s 14A in the absence of any exempt income. The rationale behind these judgments is that the amount of disallowance u/s 14A should not exceed the exempt income. Si....

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....f CIT vs Holcim India Pvt. Ltd. (supra) held that there can be no disallowance u/s 14A in the absence of any exempt income. Finally, the ratio laid down by the Jurisdictional High Court noted that the disallowance should not exceed the exempt income during the relevant financial period. In the present case, since the total exempt income of the assessee is Rs. 13,35,040 and the assessee had suo ....