2016 (11) TMI 1681

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.... Mahavir Singh, This appeal by the assessee is arising out of the order of CIT (A)-13, Mumbai in appeal No. CIT (A)-12/ACIT 6(3)/IT-10/2013-14 dated 19-12-14. The Assessment was framed by ACIT-6(3), Mumbai for the AY 2010-11 vide order dated 11-03-2013 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal of the assessee is against the or....

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.... dividend income amounting to Rs. 20,000/- and claimed the same as exempt. According to AO the assessee has incurred expenditure but no disallowance is made while claiming the exempt income. Accordingly, he computed the disallowance by invoking the provisions of section 14 A of the Act r.w.s rule 8 D of the Income Tax Rules, 1962 (hereinafter 'the rules'). Accordingly he disallowed a sum of Rs. 5,....

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.....2. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is a limited company, engaged in trading of bulk and fine, chemicals, solvent and pharmaceutical raw materials declared its 4 M/s Daga Global Chemicals Pvt. Ltd, . income at Rs. 74,40,000/- on 26/09/2009. The assessee credited dividend income of Rs. 1,82,26....

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....as dividend income, therefore, there is no question of disallowance of Rs. 14,58.412/- by invoking section 14A r.w. Rule 8D under the facts available on record. It was also explained by the ld. counsel for the assessee that on identical fact in earlier years, no disallowance was made. In the present assessment year also, no borrowed funds were invested by the assessee for making investment in shar....