2017 (11) TMI 2000

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.... MAHAVIR SINGH, JM: This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-53, Mumbai, [in short CIT(A)] in appeal No. CIT(A)-53/DCCC-5(2)/IT-132/15-16 dated 29.08.2016. The Assessment was framed by the Deputy Commissioner of Income Tax, Circle 5(2), Mumbai (in short DCIT) for the assessment year 2013-14 vide order dated 15-01-2016 under section 143(3) of t....

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.... for making disallowance u/s 14A in-spite of fact that section 14A deals with disallowance of expenditure incurred in relation to income not includible in total income." 3. We have heard the rival contentions and gone through the facts and circumstances of the case. At the outset, the learned Counsel for the assessee drew our attention to the fact that the assessee has earned dividend income of R....

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....as per the ratio of judgment of Hon'ble Delhi High Court ii the case of Cheminvest Ltd. cited above. Accordingly, while calculating the disallowance as per Rule 8D(2)(ii) and 8D(2)(iii), the average value of investment is worked out by taking into account the investments in those shares only which have yielded tax free income to the appellant by way of dividend during the relevant period. In t....