TaxTMI 
TaxTMI 
2019 (3) TMI 530
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....y filed its return of income for A.Y. 2013-14 on 30.09.2013 declaring total income at Rs. 1,05,670/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dt.11.02.2016 and the total income was determined at Rs. 5,78,250/-. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A), who vide order dt.15.05.2018 (in appeal No.NSK/CIT(A)-2/319/2015-16) dismissed the appeal of assessee. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us and has raised the following grounds : 1. That the learned CIT(A) erred in confirming the disallowance of Rs. 2,66,965/- u/s 14A Rule 8D of the Act. He failed to appreciate that in the absence of any exempt income Sec.14....
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....pellant." 3. Before us, at the outset, Ld.A.R. submitted that though assessee has raised various grounds but the only issue is with respect to disallowance u/s 14A r.w. Rule 8D of the Income Tax Rules. 4. During the course of assessment proceedings, AO noticed that assessee had investments of Rs. 2.37 crore in the shares for various companies which were purchased in earlier years. The assessee was asked to explain as to why the disallowance u/s 14A r.w. Rule 8D of I.T. Rules not be made. Assessee inter-alia submitted that it has not earned any exempt income from the aforesaid investments and therefore there cannot be any disallowance. The submissions of the assessee were not found acceptable to the AO. AO was of the view that even if asse....
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....of Cheminvest Limited Vs. CIT reported in (2015) 378 ITR 33 for the proposition that when assessee has not earned exempt income, no disallowance u/s 14A of the Act can be worked out. She therefore submitted that in the present case, the disallowance cannot exceed exempt income. Ld.D.R. on the other hand, did not controvert the submissions made by Ld.A.R. but however supported the order of lower authorities. 6. We have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to disallowance u/s 14A r.w. Rule 8D of the Act. It is an undisputed fact that assessee has incurred expenditure on account of interest etc., for making investment in shares of various companies to the extent of Rs.....