TaxTMI 
TaxTMI 
2021 (3) TMI 931
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....t income. 3. Facts in brief:- The assessee, for the year under consideration, filed its e-return of income on 30th September 2015, declaring total income of Rs. 5,27,36,480. Subsequently, the exempt income was revised to Rs. 8,550, which was received by the assessee in the form of dividend income received from investment in equity shares/mutual fund. The assessee, at the time of filing return of income under section 139(1) of the Act, voluntary disallowed an amount of Rs. 17,13,090 under section 14A of the Act being 0.5% of the average investments under rule 8D(2)(iii) of the Income Tax Rules, 1962. The Assessing Officer considering the return of income filed by the assessee and accepted the declared amount of income at Rs. 5,27,36,480. 4....
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...., No method was binding on the appellant. The requirement as per the law was to not to debit expenses related to exempt income. The AO has powers to enhance the amount of disallowance claimed by the appellant as per the provision of section 14A(2) of the Act, if the AO is satisfied that the disallowance is not correct. However, the AO or for that matter the appellate authority would not be having any mandate as such to go below the amount of disallowance which the assessee on it's own has considered to be related to exempt income. 4.4.2 In the case underhand, the issue is not of allowing a claim which was remained to be made inadvertently while filing the return of income. This is the case in which the appellant on its own has come to....
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....of filing it's return of income." The assessee being aggrieved with the aforesaid order of the learned Commissioner (Appeals), is in further appeal before the Tribunal. 5. Before us, the leaned Counsel for the assessee reiterated the submissions made before the authorities below submitted that the assessee at the time of filing return of income under section 139(1) of the Act, had made disallowance of Rs. 17,13,090, voluntarily. The dividend income earned by the assessee was only Rs. 8,550, therefore, the impugned disallowance under section 14A of the Act should be restricted to the extent of exempt income earned at Rs. 8,550. 6. The learned Departmental Representative supported the order of the authorities below. 7. Considered the ....