2019 (2) TMI 1642

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....SHRI RAJPAL YADAV, JUDICIAL MEMBER : The Assessee is in appeal before us against the order of Ld. Commissioner of Income Tax(Appeals)-XI, Ahmedabad ['CIT(A)' in short] dated 07/06/2018 passed for Assessment Year (AY) 2015-16. 2. In the first ground of appeal, assessee has pleaded that ld. CIT(A) has erred in deciding his appeal ex-parte without giving proper opportunity of hearing. 3. Howeve....

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....ared dividend income of Rs. 22, 697/- which was claimed as exempt from taxes u/s. 10(35) of the Act. The Ld. AO made an analysis of the expenditure required to be disallowed for earning this tax free income. He worked out the disallowance with the help of Rule 8D of the Income Tax Rules, 1962. Such disallowance has been worked out at Rs. 8, 05, 856/-. It is pertinent to observe that the Hon'ble Gu....

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....is to be disallowed. The ITAT Ahmedabad has restricted the disallowance equivalent to exempt income (a reference could be made to ITA No. 3266/Ahd/2015 decided on 7/12/2016 and ITA No. 750/Ahd/2016 in the case of CIT vs. Nirma Chemical Works Pvt. Ltd. decided on 03/12/2018). 6. Following the above, we are of the view that ends of justice would meet if we restrict the disallowance equivalent to t....