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TMI Blog2010 (11) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... see voluntarily in the return of income filed by it as would be clear from the statement of assessable income filed by the assessee - Therefore, delete the disallowance made by the AO and restrict the same to Rs.17,528/- as disallowed by the assessee itself - The AO shall modify the assessment order accordingly. - ITA No. 3511/Del/2010 - - - Dated:- 26-11-2010 - C.L. Sethi, K.G. Bansal, JJ. Y. Kakkar, Sr. DR, for the Respondent ORDER C.L. Sethi: In this appeal filed by the assessee against the learned Commissioner of Income-tax (Appeals)'s order dated 19.05.2010 pertaining to the Assessment Year 2007-08, the following ground has been taken by the assessee:- "1(a) On the facts and in the circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.5% of its average was worked out to Rs.2,04,827/-. The AO therefore, disallowed a sum of Rs.2,04,827/- being expenses allegedly incurred for earning dividend exempted income. The Assessing Officer relied upon the decision of Special Bench of Income-tax Appellate Tribunal, Mumbai in the case of ITO vs. Daga Capital Management Pvt. Ltd. (ITA No.8057/Mum/2003). 4. On an appeal, the CIT(A) confirmed the addition by following the aforesaid decision of ITAT in the case of Daga Capital Management Pvt. Ltd. (supra). The order of the CIT(A) runs as under:- "I have carefully considered the facts and arguments of this case. It is pertinent to note that with regard to the disallowance u/s 14A, Rule 8D has specifically been framed in March, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2007-08. Therefore, Rule 8D will not be applicable to the present case. Disallowance under sec. 14A can be made only with regard to the expenses, which are incurred for the purpose of earning dividend income. In this case, the assessee has submitted before the authorities below that the assessee had incurred only an amount of Rs.17,528/- on account of fees paid to M/s. Kotak Securities Ltd. for managing its investment and no other expenditure either administrative or interest expenditure were incurred for earning dividend income. It has been further clarified by the assessee that the sum of Rs.17,528/- incurred by the assessee has already been disallowed by the assessee voluntarily in the return of income filed by it as would be clear fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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