2021 (7) TMI 1215

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....R S. RIFAUR RAHMAN (ACCOUNTANT MEMBER): The present appeal has been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals)-152, in short 'Ld. CIT(A)', Mumbai, dated 19.06.19 for AY 2015-16. 2. The brief facts of the case are, assessee filed its return of income on 30.11.2014 declaring loss of Rs. 28,39,12,436/-. The return of income was processed under section 14....

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....relying on various decision that section 14A should not be applicable where no dividend is received. However, in the given case assessee has earned exempt income of Rs. 5,26,516/- only and assessee itself has disallowed to the extent of Rs. 13,85,320/-. After considering the submissions of the assessee, AO rejected the contentions of the assessee and invoked rule 8D (2) of the IT Rules to disallow....

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....mount of exempt income earned during the year under consideration i.e. Rs. 5,26,516/-. Although the appellant has sumo moto disallowed Rs. 13,85,320/- in its Return of Income. The appellant hereby prays that on the basis of the findings given by the learned CIT(A) in his order, stating that disallowance under section 14A cannot exceed dividend income, thus the disallowance under section 1....

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.... 7. On the other hand, Ld DR relied on the orders passed by Ld CIT(A). 8. Considered the rival submissions and material placed on record. We notice that assessee had suo-moto disallowed an amount of Rs. 13,85,320/-, however assessee had earned exempt income of Rs. 5,26,516/-. After considering the submissions of the assessee, we are in agreement with the assessee based on the decisions of the ....