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2017 (11) TMI 799 - ITAT MUMBAIDisallowance u/s. 14A - Held that:- We have observed that the assessee is engaged in business of direct to home (DTH) satellite television services and teleport services. We further observed that assessee has not received any dividend income or other exempt income during the impugned assessment year. The assessee has conceded and accepted to have incurred ₹ 5 lacs towards an expenditure u/s. 14A towards earning of an exempt income which is claimed to be reasonable expenditure to be disallowed u/s 14A. We have observed that the assessee has not received any exempt dividend income ratio of the decision of Hon’ble Delhi High Court in the case of Cheminvest Limited v. CIT (2015 (9) TMI 238 - DELHI HIGH COURT) and in the case of Ballarpur Industries Limited [2016 (10) TMI 1039 Bombay High Court] is applicable, the disallowance of expenditure u/s 14A in the instant case be restricted to an admitted expenses to have been incurred for earning of the exempt income to the tune of ₹ 5 lack We hereby order deletion of the addition u/s 14A as confirmed by the CIT-A by restricting/upholding the disallowance of expenditure u/s 14A to the tune of admitted expenditure of ₹ 5 lacs claimed to have been incurred by the assessee for earning exempt income as conceded by the assessee. - Decided partly in favour of assessee.
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