2016 (11) TMI 1652

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... ORDER Per Shri M. Balaganesh, AM: This appeal by assessee is arising out of order of CIT(A)-3, Kolkata vide Appeal No. 2117/CIT(A)-3/W-7(4)/14-15/Kol dated 25.05.2016. Assessment was framed by ITO, Wd- 7(4), Kolkata u/s. 143(3) of the Income tax Act, 1961 (hereinafter referred to as the "Act") for AY 2012-13 vide his order dated 24.02.2015. 2. The only issue to be decided in this appe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e us on the following ground: "1. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in directing the assessing officer to recomputed disallowance under section 14A read with rule 8D(2)(iii) at the rate of 0.50% of average value of only those investments that yielded exempted income, without giving a direction that such disallowance of expenditure cannot exceed t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... incurred for earning any income which do not form part of total income. So going by the plain language of the section it could be safely concluded that the legislature intended only to disallow the expenditure that were incurred for earning exempt income. The legislature never intended to disallow the expenditure which is more than the exempt income derived by the assessee. We also draw support f....