2019 (2) TMI 1642

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....hri M.S.A. Khan, CIT-DR ORDER PER 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 ....

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.... the Assessing Officer that assessee has declared 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/-. I....

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....ed so as to mean that entire tax-free income 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 i....

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....t of Hon'ble High Court of Gujarat in the case of CIT vs. GSRTC reported in 366 ITR 170 (Guj. ). Since the ld. first appellate authority has based his order on the decision of Hon'ble Gujarat High Court and Hon'ble High Court has held that if an assessee failed to pay employees' contribution to PF and ESI account within the due date provided under those Acts, then assessee will not be entitled for....