2025 (2) TMI 1674

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....t has been filed. On going through the case file, I noticed that even on earlier occasion, date was sought and the matter was consequently adjourned to today i.e 29.01.2025 even on this date, again none appeared which shows that assessee is not interested in pursuing his appeal. On the other hand Ld DR present in the court is ready with the arguments. Therefore I have decided to proceed with the hearing of the case ex-parte. The assessee has raised the following grounds of appeal: 1. The Ld. CIT (A) erred in uploading the action of AO of disallowance under section 14A of the Act read with Rule 8D of the I T Rule, 1962. 2. The Ld. CIT (A) did not appreciate that appellant has already disallowed the expenses related to inves....

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.... is less than sale consideration reported in Form 26QB. 5. Since the assessee could not submit satisfactory explanation, therefore AO considered the fact that as against the total exempt income of Rs. 2,15,71,266/-, the assessee has disallowed sum of Rs. 2,08,544/-, therefore the AO while not satisfied with the accounts of the assessee, made disallowance u/s 14A r.w.s 8(D)(i) of Rs. 5,10,881/- 6. The Ld. CIT(A) after considering the written submissions filed before him decided the appeal of the assessee by holding that the disallowance u/s 14A cannot exceed the exempt income and thus adjudicated the same on merits, the operative portion of the order of the CIT(A) is contained in para 6 to 7.8, the same is reproduced herein below: ....

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.... claim of the appellant that the disallowance u/s. 14A cannot exceed the exempt income. As per the appellant's claim out of total expenses of Rs. 8,70,932/- the appellant has already disallowed Rs. 3,60,051/- in respect of Sec. 14A, House Property, etc. Thus, the AO has disallowed the balance sum of Rs. 5,10.88 ME TAX DEPARTMENT 7.5. The perusal of the computation filed by the appellant shows that the appellant has claimed the following two amount as exempt income during the year dividend u/s. 10(34) of Rs. 2,08,544/- and LTCG on Listed Securities u/s. 10(38) of Rs. 2,13,62,721/-. Thus, the disallowance u/s. 14A cannot exceed Rs. 2,15,71,266/-. In the instant case, even after including the disallowance made by the AO, the disal....