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TMI Blog2015 (2) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... :- Mumbai Bench of the Tribunal in the case of Daga Global Chemicals P. Ltd. Vs. DCIT [ 2015 (1) TMI 1204 - ITAT MUMBAI] held that disallowance under section 14A read with Rule. 8D cannot exceed the exempt income. Respectfully following the same, we direct the AO to restrict the disallowance on account of interest and administrative expenses to ₹ 33,446/-. Thus, the grounds of the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 14A of the Act on account of administrative expenses at the rate of 0.5% which comes to ₹ 76,566/-. 3. Brief facts of the case are that the AO observed that the assessee in the return of income has shown dividend income of ₹ 33,446/- and claimed the same as exempt from tax. He observed that the assessee has not made any disallowance of expenditure incurred for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it to be fair and reasonable and confirmed the same. 6. Before us, the only arguments of the AR of the assessee was that the disallowance under section 14A of the Act should not exceed the exempt income. On the other hand, DR supported the orders of the lower authorities. 7. We have heard rival submissions and perused the orders of lower authorities, and material availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemicals P. Ltd. Vs. DCIT vide its order dated 1.1.2015 passed in ITA No.5592/Mum/2012 held that disallowance under section 14A read with Rule. 8D cannot exceed the exempt income. Respectfully following the same, we direct the AO to restrict the disallowance on account of interest and administrative expenses to ₹ 33,446/-. Thus, the grounds of the appeal of the assessee are partly allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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