2018 (6) TMI 1601

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....ue: Shri K.J. Rao, DR ORDER B. Ramakotaiah,   This is an appeal by assessee on the issue of disallowance u/s. 14A of the Income Tax Act [Act] made by the Assessing Officer (AO) and confirmed by the Ld. Commissioner of Income Tax (Appeals)-5, Hyderabad. 2. Briefly stated facts are that assessee-company, engaged in the business of trading of commercial vehicles and other attendant m....

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....rinciples and judgements. 3. Ld.AR submitted that assessee has earned only an amount of Rs. 30,148/- as dividend which was claimed as exemption and the disallowance should be restricted to the exempt income and relied on the Co-ordinate Bench decision in assessee's own case in AY. 2011-12 in ITA No. 1403/Hyd/2017, dt. 25-05-2018. 4. Ld.DR, however, relied on the orders of the AO and CIT(A). ....

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....e 8D(2). Since no nexus is established, the disallowance per se under Rule 8D(2) does not apply. Moreover, similar issue was considered in assessee's own case by the Coordinate Bench in the AY. 2011-12, wherein the Tribunal has confirmed the order of Ld.CIT(A), in restricting the disallowance to the amount claimed as exempt, following the principles laid down by the various Hon'ble High Courts....

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....CIT in ITA No. 846/Hyd/2016, dated 28.02.2017. iv) Hon'ble High Court of Punjab & Haryana in the case of Pr. CIT vs. Empire Package (P) Ltd reported in (2017) 81 Taxmann.com 108 (P&H H.C) dated 12th January, 2016. 4. Having regard to the rival contentions and the material on record, we find that this issue is covered in favour of the assessee by the decision of the Hon'bl....