TaxTMI 
TaxTMI 
2015 (9) TMI 1772
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....,86,920/- and subsequently revised to Rs.2,17,31,360/-. During the course of assessment proceedings, the Assessing Officer noted that the assessee has shown dividend income of Rs.2,96,383/. The assessee was asked to justify why the disallowance under section 14A of the Income Tax Act, 1961 (in short 'the Act') be not worked out. The assessee submitted before the Assessing Officer that during the year under consideration, it had earned nontaxable income of Rs.2,96,383/- while the taxable income earned by it was Rs.2,17,56,363/-. The assessee submitted that during the year under consideration, no expenses were incurred by it to earn non-taxable income. However, the assessee itself in pursuance and in compliance with the provisions of section ....
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....to disallowance of Rs.25,007/- was made by the assessee under section 14A of the Act. It was submitted that the suo moto disallowance made by the assessee was on a very reasonable basis. Further, it was also submitted that if the Assessing Officer was not satisfied with the disallowance so made by the assessee, he had to record reasons for the same, which he had not done. Reliance was placed on the judgment of Hon'ble Jurisdictional High Court in the case of CIT Vs. Deepak Mittal (2014), 361 ITR 131 (P&H). The learned CIT (Appeals) allowed the appeal of the assessee and directed the Assessing Officer to delete the disallowance made by him as per Rule 8D r.w.s. 14A of the Act. The findings of the learned CIT (Appeals) are recorded at pag....
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....uch a manner by applying Rule 8D that the entire expenditure debited to P & account becomes disallowable. Further to proceed to machinery available under Rule 8D there has to be satisfaction u/s 14A(2) which is not recorded by the Assessing Officer. However the given facts and circumstances of the case as highlighted above do not leave any room to doubt the correctness of allocation of expenses pertaining to exempt income as done by the assessee. This being so there is no necessity to work out the disallowance as per Rule 8D. It is also to be appreciated that, as there are requirements to disallow expenses pertaining to exempt income, there is also requirement as per section 37(i) to allow the expenses that had been incurred for earning the....
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....order of the learned CIT (Appeals) and reiterated the submissions made before the lower authorities. As per him, the learned CIT (Appeals) has given relief to the assessee by giving very reasonable findings and there is no fault in the order of the learned CIT (Appeals). It was prayed that the order of the learned CIT (Appeals) may be sustained. 7. We have heard the rival contentions and perused the material available on record. We are in agreement with the findings of the learned CIT (Appeals), who has given very categorically the findings to the facts of the case that the Assessing Officer is not justified in disallowing whole of the expenses claimed by the assessee in its computation of income. The assessee has earned the taxable inco....