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TMI Blog2019 (3) TMI 1583X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the amount of exempt income. We are of the considered view that the order passed by the CIT (A) is in accordance with the principles of law laid down by the Hon ble High Court in the case of Joint Investment Pvt. Ltd. vs. CIT [ 2015 (3) TMI 155 - DELHI HIGH COURT] . Hence, we do not find any reason to interfere with the findings of the Ld. CIT (A). We accordingly uphold the findings of the CIT (A) and dismiss the sole ground of appeal of the revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s 14A to the extent of exempt income and thereby deleting the addition of ₹ 1,09,89,032/- made by the Assessing Officer ignoring the fact that the Assessing Officer has rightly made a disallowance u/s 14A as per working of Rule 8D of the Income Tax Act, 1962." 4. Before us, the Ld. Departmental Representative (DR) relying on the assessment order passed by the AO submitted that since the AO has worked out the disallowance as per the provisions of section 14A read with Rule 8D of the Rules, the Ld. CIT (A) ought to have confirmed the addition made by the AO. The Ld. DR further contended that Rule 8D prescribes the method for determining the expenditure incurred in relation to the income which does not form part of the total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the addition made u/s 14A for the present assessment year is restricted to the exempt income of ₹ 50,545/-. 7. In the case of Cheminvest Ltd. vs. Commissioner of Income Tax (supra) the Hon'ble Delhi High Court has held that section 14A will not apply if no exempt income is received or receivable during the previous year. In the case of Joint Investment P. Ltd. vs. Commissioner of Income Tax (supra), the Hon'ble Delhi High Court has laid down the principle of law that the disallowance u/s 14 A read with Rule 8D cannot exceed the exempt income. The relevant para of the order of the Hon'ble High Court reads as under:- "9. In the present case, the AO has not firstly disclosed why the appellant/ássessee's claim for attributing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Ld. CIT (A) is in accordance with the principles of law laid down by the Hon'ble High Court in the case of Joint Investment Pvt. Ltd. vs. CIT (supra). Hence, we do not find any reason to interfere with the findings of the Ld. CIT (A). We accordingly uphold the findings of the Ld. CIT (A) and dismiss the sole ground of appeal of the revenue. CO No. 29/MUM/2019 (Assessment Year: 2011-2012) The assessee has filed the cross objection against the impugned order on the following effective grounds: 1. "Whether on the facts and circumstances of the case and in the law, the learned assessing officer erred in invoking Section 14A of the Income Tax Act, 1961 read with Rule 8D of Income Tax Rules, 1962 without recording the required s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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