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TMI Blog2019 (6) TMI 605X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue is dismissed. - I.T.A. No.1805/CHNY/2017 - - - Dated:- 10-6-2019 - Shri George Mathan, Judicial Member And Shri Inturi Rama Rao, Accountant Member For the Appellant : Shri. AR.V. Sreenivasan, IRS, JCIT. For the Respondent : Shri. Arjun Raj. N. CA for Shri. S. Sridhar, Advocate ORDER PER INTURI RAMA RAO, ACCOUNTANT MEMBER: This is an appeal filed by the Revenue directed against the order of the Commissioner of Income Tax (Appeals)-11, Chennai ( CIT(A) for short) dated 31.03.2017 for the Assessment Year (AY) 2012-2013. 2. The Revenue raised the following grounds of appeal: 1. The order of the learned CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax which is liable for disallowance u/s 14A applying Rule 8D. 2.6 The learned CIT(A) ought to have considered the fact that the assessee company is systematically making investments every year which requires huge administrative and financial expenditures and CIT(a) has not considered the fact that the assessee company has made fresh investments in Mutual Funds to the tune of ₹ 11,05,95,983/- and in the shares to the tune of ₹ 3,20,72,670;- during the financial year relevant to AY 2012-13. 2.7 The learned CIT(A) ought to have considered the CBDT's Circular No.5 of 2014, wherein the AO has to calculate the disallowance u/s 14A if the assessee has investments fetching exempt income even if no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax (Appeals) who vide impugned order directed the Assessing Officer to restrict the amount of disallowance u/s.14A of the Act to the extent of actual dividend income earned of ₹ 1,14,134/-. Thus, the appeal of the assessee came to be partly allowed. 6. Being aggrieved by the order of the Commissioner of Income Tax (Appeals), the Revenue is in appeal before us challenging the correctness of the order of the ld. Commissioner of Income Tax (Appeals). The Sr. Departmental Representative submitted that once there is an exempt income, provisions of Section 14A of the Act has to be invoked and the amount of disallowance has to be calculated in accordance with Rule 8D. In this connection, he placed reliance on the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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