2016 (3) TMI 1386

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.... ORDER Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 21/07/2014 of the ld. First Appellate Authority, Mumbai. The only ground raised in this appeal pertains to disallowing a sum of Rs. 1,38,29,156/- u/s 14A of the Income Tax Act, 1961 (hereinafter the Act) read with rule 8D of the Income Tax Rules 1962, against the dividend income of Rs. 70,03,835/-. ....

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....ance of Rs. 60,24,063/- made u/s 14A of the Act by the Assessing Officer invoking Rule 8D. 3. The assessee is a non-banking finance company. The return for the year was selected for scrutiny assessment. During the course of the scrutiny assessment, the Assessing Officer noticed that the assessee has received exempt dividend income of Rs. 1,19,29,077/-. The AO further found that the assess....

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....ry evidences brought on record. 6. Per contra, the Ld. Departmental Representative supported the orders of the Revenue authorities. 7. We have carefully perused the orders of the authorities below and the relevant documentary evidences brought on record before us. The assessee has made investments in financial year 2005-06 to the tune of Rs. 19.67 crores which was out of share ca....

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....6,453/-. Since the assessee has suo-motu disallowed Rs. 1,81,532/-, the AO is directed to restrict the disallowance at Rs. 4,14,921/-. In result, the appeal filed by the assessee is partly allowed." 2.2. During hearing before us, the ld. counsel for the assessee, contended that the aforesaid reasoning contained the order may be followed in the present assessment year also. It is noted ....