TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 1764
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....ome Tax Act, 1961 (for short the 'Act'). 2. Brief facts of the case are that the assessee company engaged in providing electric bill presentation and payment services, filed its return of income declaring the total income of Rs. 4,91,86,419/-. Since, the case was selected for scrutiny, the AO issued notice u/s 143 (2) and 142 (1) of the Act. In response to the said notices, the authorized representative of the assessee appeared before the AO and filed the relevant details called for. It was noticed that the assessee had earned dividend income of Rs. 1,37,77,805/- and the assessee had claimed exemption u/s 10(34) of the Act, the AO asked the AR to furnish the working of disallowance u/s 14A read with rule 8D. The AR submitted that since no....
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....re the Tribunal on the following effective grounds:- "Ground I: Disallowance U/s 14A r.w.s 8D of the Income Tax Rules, 1962 ("The Rules") of Rs. 12,39,009/-: 1. On the facts and circumstances of the case and in law, Hon'ble CIT (A) erred in confirming the action of the Deputy Commissioner of Income Tax 10(1), Mumbai (" the AO") to the extent of Rs. 12,39,009/- u/s 14A of the Act. 2. Hon'ble CIT (A) failed to appreciate and ought to have held that: i. For computing the disallowance u/s 14A of the Act only expenditure 'in relation to' earning dividend income is to be considered and, ii. Disallowance cannot be made on ad-hoc basis. 3. The Appellant prays that the disallowance u/s 14A of the Act be restricted to Rs. 2,60,257/-....
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....pugned order passed by the Ld. CIT (A) is liable to be set aside. 5. On the other hand, the Ld. Departmental Representative (DR) fairly admitted that both the grounds of appeal are covered by the order of the Tribunal rendered in the assesee's own case for the A.Y. 2008-09 and 2009-10. 6. As pointed out by the Ld. counsel for the assessee the coordinate Bench has decided the issue of disallowance u/s 14A read with Rule 8D of the Income Tax Rules in the assessee's own case ITA No. 8547/Mum/2011 for the A.Y. 2008-09 and ITA No. 5395/Mum/2013 for the A.Y. 2009-10. The relevant para of the order of the coordinate Bench reads as under:- "6. We have gone through the assessment order and noticed that the assessing officer have nowhere....
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....on of the assessee's disallowance and accordingly, we delete the disallowance. 8. Similar are the facts in AY 2008-09 and hence, taking a consistent view, we delete the disallowance in AY 2008-09 in ITA no. 8547/Mum/2011 also. 7. Since, the coordinate Bench has decided the identical issue in favour of the assessee in assessee's own cases for the A.Y. 2008-09 and 2009-10 and since the facts of the present case are identical to the facts of the case of the assessee for the A.Y. 2008-09 and 2009-10, we respectfully following the decision of the coordinate Bench decide this ground of appeal in favour of the assessee. 8. Similarly, the coordinate Bench has decided the identical issue in favour of the assessee in the assessee's own case fo....