9911796707
TMI Blog2013 (8) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... s.Exide Industries Ltd. [2013 (6) TMI 533 - ITAT KOLKATA] following the decision of Sagarika Goods and Services Pvt. Ltd. vs ITO [2013 (6) TMI 534 - ITAT KOLKATA] and DCIT vs EIH Associated Hotels Ltd (2008 (1) TMI 426 - ITAT CALCUTTA-D) has restricted the disallowance u/s 14A at 1% of the exempt income for years prior to the A.Yr.2008-09. Therefore, respectfully following the same AO directed to recomput the disallowance of expenditure relating to the exempt income at 1% of the exempt income being Long Term capital gain and dividend income - appeal of the assessee partly allowed and Revenue dismissed. - ITA No.1750/Kol/2011, ITA No.267/Kol/2012 - - - Dated:- 7-6-2013 - Sri N. S. Saini AM And Sri Mahavir Singh, JM,JJ. For the Petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earning of exempt income and thereby made a total disallowance of Rs.23,71,642/-. 5. On appeal the ld.CIT(A) restricted the disallowance to Rs.9,95,907/- which was 4.03% of the total interest and other expenditure of Rs.2,47,12,343/-. While doing so he held as under :- "7. I have carefully gone through the submission of the appellant. The argument of the appellant for non applicability of the provisions of section 14A is not correct as held by the jurisdictional High Court in the case of ISG Traders Ltd. vs CIT, WB-II, Kolkata (ITA No.264 of 2003 - 2011 - TIOL-621-HC-KOL-IT). It has been held that : "On Appeal before the HC Appellant Counsel contended that the entire interest expenditure was incurred by the assessee for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure as relatable to earning of dividend income as held by the jurisdictional High Court in the case of ISG Traders Ltd. vs CIT, WB-II, Kolkata (ITA No.264 of 2003 - 2011 - TIOL-621-HC-KOL-IT). The appellant has been asked to give the pro-rata interest expenditure as relatable to earning of dividend. The appellant has submitted the pro-rata disallowances as below :- 1. i) Total Turnover Rs.76,007,449 ii) Dividend Income Rs. 3,068,670 iii)Percentage of dividend income to total turnover Rs.3,068,670/Rs.76,007,449/4.03% Total Interest expenditure Rs.23,778,954 Interest expenditure relatable to Earning of exempt dividend income Rs.23,778,954 x 4.03% Rs.9,58,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in place of Rs.23,71,642/-. 7. None appeared on behalf of the assessee when the case was called for hearing. Notice for hearing was sent to the assessee on 17.12.2012 by registered post with AD. The same has not been returned unserved by the postal authorities. No adjournment application has also been filed. Therefore the appeals were heard and disposed off after considering the materials on record and submissions of the ld. DR. 8. The ld. DR supported the order of the AO. 9. We have heard the ld. DR and perused the orders of the lower authorities and materials available on record. The undisputed facts in the present appeals before us are that during the year under consideration the assessee had shown long term capital gain of Rs.4,93 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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