2018 (9) TMI 710

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.... S. R. Senapati, Sr. DR ORDER PER BECNH : These are cross appeals. The first one is filed by the assessee and the second one filed by the Revenue and are directed against the order dated 21.01.2015 of the CIT(A)- 1, New Delhi relating to assessment year 2011-12. For the sake of convenience these were heard together and are being disposed of by this common order. ITA No.1677/Del/2015 (By Asse....

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....ons of section 14A r.w. Rule 8D. He, therefore, asked the assessee to explain as to why proportionate disallowance u/s 14A of the Act should not be made from the expenses incurred towards investments made in shares/securities of companies. Rejecting the various explanations given by the assessee and applying the provisions of section 14A read with Rule 8D, the Assessing Officer made disallowance o....

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.... 14A is called for. However, the ld. CIT(A) was not satisfied with the argument advanced by the assessee and upheld the action of the Assessing Officer. 5. Aggrieved with such order of the ld. CIT(A), the assessee is in appeal before the Tribunal. 6. The ld. counsel for the assessee, at the outset, submitted that the total dividend received during the year is only Rs. 4280/- and, therefore, the ....

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.... dividend income received during the year which is exempt is only Rs. 4280/-, therefore, disallowance, if any, u/s 14A r.w. Rule 8D cannot exceed the actual amount of such exempt income received. We find some force in the above argument of the ld. counsel for the assessee. It has been held in various decisions that disallowance u/s 14A r.w. Rule 8D cannot exceed the actual dividend income received....