2021 (11) TMI 740

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....pra, Sr.DR ORDER PER KUL BHARAT, JM : This appeal filed by the assessee pertaining to assessment year 2014-15 is directed against the order of Ld. CIT(A)-35, New Delhi dated 25.08.2017. The assessee has raised following solitary grounds of appeal:- 1. "That the learned Commissioner of Income Tax (Appeals)-35, New Delhi has erred both in law and on facts in sustaining the disallow....

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....ring funds exceeds investment in tax-free securities. It is therefore, prayed that disallowance made and sustained by the learned Commissioner of Income Tax (Appeals) may kindly be deleted and appeal of the appellant company be allowed." 2. The only effective ground raised by the assessee is against the disallowance made u/s 14A of the Income Tax Act, 1961 ("the Act") r.w.Rule 8D of th....

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....addition of Rs. 1,37,303/- was deleted and the addition of Rs. 307,307/- was confirmed as made by invoking the provision of section 14A of the Act. 5. Aggrieved against this, the assessee is in appeal before this Tribunal. 6. At the outset, Ld. Counsel for the assessee submitted that in this case, the assessee had earned a dividend income of Rs. 49,489/- only. Ld. Counsel for the assessee su....

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....sallowed. The window for disallowance is indicated in Section 14A, and is only to the extent of disallowing expenditure; incurred by the assessee in relation to the tax exempt income. This proportion or portion of the tax exempt income surely cannot swallow the entire amount as has happened in this case." Respectfully following the ratio laid down by the Hon'ble Delhi High Court, we direct the Ass....