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TMI Blog2018 (10) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... - I.T.A. No. 3086/Chny/2017 - - - Dated:- 27-8-2018 - Shri A. Mohan Alankamony, Accountant Member And Shri Duvvuru RL Reddy, Judicial Member For the Appellant : Shri AR.V. Sreenivasan, JCIT For the Respondent : Shri R. Vijayaraghavan, Advocate ORDER PER A. MOHAN ALANKAMONY, AM:- This appeal by the Revenue is directed against the order passed by the learned Commissioner of Income Tax(Appeals)-11, Chennai, order dated 27.09.2017 in ITA No.299/CIT(A)-11/2016- 17 for the assessment year 2014-15 passed U/s. 250(6) r.w.s. 143(3) of the Act. 2. The Revenue has raised several grounds in its appeal however the crux of the issue is that the Ld.CIT(A) has erred in directing the Ld.AO to exclude the investments made from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om which no dividend income was received should not be considered for the purposes of computing the disallowance u/s 14A and relied on the decision in the case of Computer Age Management Services (P) Ltd. v ACIT, ITA No.1259 to 1261jMdsj2014. Since the decision cited is from jurisdictional ITAT, Chennai, the AO is directed to follow the decision and accordingly work out the disallowance under Rule 8D by excluding those investments from which no exempt income was earned. 5. Aggrieved by the above direction of the Ld.CIT(A), the Revenue is now on appeal before us. 6. At the outset, we find that with respect to disallowance U/s.14A of the Act, we had held in ITA Nos.1729 1730/Chny/2016 in the case M/s. Sthithi Insurance Services Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed by the assessee. Therefore we are of the view that the Ld.AO was right in his realm to invoke the provisions of Section 14A r.w.r.8D of the Rules. Further it is pertinent to mention that there is no correlation between the dividend income earned by the assessee and the expenditure incurred by the assessee towards investment that earns exempt income. For example:- during a particular year the assessee would not have earned any dividend income though it has made heavy investments during the previous year or the earlier years, but the assessee is bound to incur cost for acquiring / maintaining /disinvesting such investments. Hence it cannot be inferred that the dividend income would be directly proportional to the expenditure incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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