TaxTMI 
TaxTMI 
2019 (7) TMI 1824
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....addition/ disallowance on the grounds that the assessment was re-opened but the disallowance was made on issue not at all connected with the issue on which reasons were recorded. 3. The second issue raised in ground No. 2 is the Learned CIT(A) erred in confirming disallowance U/S 14A r.w. Rule 8D (iii) Of Rs. 2,45,467/-. The learned CIT(A) failed to consider that the dividend received & subject to tax was a sum of Rs. 39,735/- & not treated as tax exempt. The learned CIT(A) erred in confirming disallowance under Rule 8D (iii) On investments and stock in trade & if only investment was considered, then the disallowance would not exceed a sum of Rs. 1,125/- 4. Brief facts of the case are that the assessee is engaged in the business of NBFC a....
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....er addition/ disallowance on a fresh issue. However, in the instant case, the AO has proceeded to make a disallowance u/s. 14A in the re-assessment proceedings, though, no addition was made by him on the ground for which the assessment was re-opened. Therefore, in view of the decision of the jurisdictional High Court in the case of Jet Airways (supra), the action of the Assessing Officer of making the disallowance u/s. 14A is found to be not as per law. 6. Despite holding so learned CIT(A) proceeded to partly upholding the disallowance u/s. 14A of the Act. 7. Against this order, the assessee is in appeal before the ITAT. I have heard both the counsel and perused the records. 8. Learned Counsel of the assessee submitted that learned CIT(....
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....esult, assessee's appeal for A.Y. 2012-13 stands allowed. A.Y. 2015-16 12. In this case also assessee is aggrieved in as much as learned CIT(A) has confirmed the disallowance u/s. 14A of a sum of Rs. 1,37,643/-. In this case it is the contention of learned Counsel of the assessee that the assessee has only earned dividend income of Rs. 14,077/-. Learned counsel submitted that the disallowance u/s. 14A cannot exceed exempt income earned. Furthermore, learned counsel pleaded that in this case even the dividend income so earned Rs. 14,077/- has been offered to tax. Hence, learned counsel pleaded that no disallowance u/s. 14A is required in this case. 13. Upon hearing both the counsel and perusing the records, I find that Hon'ble Apex C....