2020 (10) TMI 1380

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....ed AR is that disallowance u/s 14A of the I.T.Act ought to be restricted to the exempt income received for the relevant assessment years. 3. The brief facts of the case are as follow: For the assessment years 2010-2011 and 2013-2014, the Assessing Officer made disallowance of Rs.1,10,78,850 and Rs.15,68,144 by invoking the provisions of section 14A of the I.T.Act r.w.Rule 8D of the Income Tax Rules. 4. Aggrieved by the assessment orders for the assessment years 2010-2011 and 2013-2014, the assessee filed appeals before the first appellate authority. The CIT(A) partly allowed the appeals of the assessee. The CIT(A) had also passed order u/s 154 of the I.T.Act. Subsequently, giving effect to the order u/s 154 of the I.T.Act, di....

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....9 and Rs.91,507 for the assessment years 2010-2011 and 2013-2014, respectively. In support of the above contention, the assessee has placed on record the computation of total income along with the financial statements for the assessment years 2010-2011 and 2013- 2014 (for the assessment year 2010-2011, pages 138 to 171 of the paper book, for the assessment year 2013-2014, pages 172 to 212 of the paper book). On perusal of the financial statements and the computation of income for the assessment years 2010-2011 and 2013-2014, it is clear that the assessee has earned exempt income only to the extent of Rs.43,969 and Rs.91,507 for the assessment years 2010-2011 and 2013- 2014, respectively. 7.2 The recent order of the Bangalore Benches of t....

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....axmann.com 167) and has held as under:- "25. Total exempt income earned by the respondent-assessee in this year was Rs. 19 lakhs. In these circumstances, we are not required to consider the case of the Revenue that the disallowance should be enhanced from Rs. 75.89 crores to Rs. 144.52 crores. Upper disallowance as held in Pr. CIT v. McDonalds India (P.) Ltd. ITA 725/2018 decided on 22nd October, 2018 cannot exceed the exempt income of that year." The Mumbai bench of Tribunal has also taken an identical view in the case of Future Corporate Resources Ltd (supra) and the relevant observations made by the Tribunal in the above said case are extracted below:- "10. Coming to the second argument of the assessee, the ass....