2019 (8) TMI 44

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.... the case Ld. CIT(A) was justified in relying o the precedents cited which were distinguishable in as much as they were rendered in cases decided prior to introduction of rule 8D or prior to clarification issued by CBDT Circular No. 5 of 2014. 2. The appellant prays that the order of the Ld. CIT(A) on the above ground of appeal to be set aside that of the AO be restored. 3. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary." 3. The brief facts of the case are that the assessee filed its return of income on 29.11.2014 declaring total income to the tune of Rs. 59,46,330/-. The return was processed u/s 143(1) of the I.T. Act. 1961. The case was selected for scrutiny. Not....

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.... said contention and argued that the assessee nowhere earn any exempt income, therefore, the CIT(A) has rightly deleted the addition in accordance with law. Before going further, we deem it necessary to advert the finding of the CIT(A) on record.:- "6.3 I have considered the facts of the case and the appellant's submissions. Perusal of the appellant's P & L account shows that the appellant had earned dividend income of Rs. 7,500/- only. This dividend income was earned from investment in co-operative bank which is taxable and is not exempt. It is seen that this dividend income has also been shown as income from other sources and has been offered to tax in the computation of income and has not been claimed as exempt. No exemp....

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....y, the adjustment made to the book profit U/s 115JB on account of disallowance u/s 14A also does not survive. The appellant's ground of appeal is allowed." 5. On appraisal of the above mentioned finding, we find that the assessee has shown the exempt income in sum of Rs. 7,500/-. The said dividend income was earned from investment which is taxable and is not exempt factually. In computation of income, the assessee nowhere showed the said income as exempt. In brief, the assessee nowhere earned any exempt income in the relevant assessment year. The CIT(A) has relied upon the decision of the Cheminvest Vs. CIT (378 ITR 33) (Del) and others relevant law mentioned above in the said order. Further, we found that the case of the assessee du....