2016 (5) TMI 1417

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....AM :- The appeal filed by the assessee is directed against the order dated 22.12.2010 passed by learned CIT(A)-2, Mumbai and it relates to A.Y. 2007-08. 2. The first issue urged in the appeal relates to disallowance u/s. 14A of the Act. The assessee has earned dividend income of Rs. 8,13,986/- during this year and claimed the same as exempt. The assessee did not make any disallowance u/s 14A of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uring the instant year. Learned Counsel submitted that most of the shares held by the assessee are brought forward from earlier year and during the year under consideration it has made investment in mutual funds only. Accordingly he submitted that there is no requirement making any disallowance out of interest expenditure. 4. Learned AR further submitted that Hon'ble Bombay High Court has uph....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ught forward from the earlier year. Under these set of facts, we are of the view that the disallowance u/s. 14A may be restricted to 2% of the dividend income earned by the assessee as held in the case of Godrej Agrovet Ltd. (ITA no. 934 of 2011 dated 8.1.2013) by Hon'ble Bombay High Court. The order of learned CIT(A) stands modified accordingly. We order accordingly. 7. Next issue relates to the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....emonstrated that Net profit disclosed by the assessee remains the same under both methods. This statement shows that there would be no effect on the profit even if exclusive method is followed. We noticed that the Assessing Officer has not examined this statement put forth by the assessee. Accordingly, we are of the view that this issue requires fresh examination at the end of the Assessing Offic....