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TMI Blog2020 (10) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in the return of income. In some cases, applying the formula laid down in Rule 8D, the disallowance may exceed such suo motu disallowance made by the assessee. - R/Tax Appeal No. 224 of 2020 - - - Dated:- 12-10-2020 - Honourable The Chief Justice Mr. Vikram Nath And Honourable Mr. Justice J.B. Pardiwala For the Appellant(s) : Mrs Mauna M Bhatt For the Opponent(s) : Mr B S Soparkar ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. Draft amendment is allowed. The same shall be carried out at the earliest. 2. This tax appeal under Section 260A of the Income Tax Act, 1961 (for short the Act, 1961 ) is at the instance of the Revenue and is directed against the order passed by the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al income. The Assessing Officer proceeded for computing the disallowance under Section 14A of the Act in tune with the mechanism provided in Rule 8D which worked out at ₹ 52,65,01,883/-. The same resulted into a further disallowance of ₹ 23,29,20,266/- being the difference of the two. 5. Being aggrieved, the assessee preferred appeal before the CIT (A). The CIT(A) restricted the disallowance to the extent of ₹ 1,38,04,106/- and deleted the rest, i.e., 21,91,16,160/-. 6. Being dissatisfied with the decision of the CIT (A), the Revenue as well as the Assessee preferred appeal before the Appellate Tribunal to the extent prejudicial to them. The Tribunal allowed the appeal filed by the assessee while dismissed the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of PCIT Vs. State Bank of Patiala reported in 99 Taxmann.com 26 wherein the SLP was dismissed involving the identical facts and circumstances. 6.2. In view of the above, we hold that the amount of disallowance as discussed above is not warranted in the present facts and circumstances. As such, the amount of the disallowance under section 14A r.w.r. 8D of Income Tax Rules cannot exceed the amount of disallowance made by the assessee i.e. ₹ 29,35,81,617.00 in the income tax return. Accordingly, we delete the addition made by the AO in the case of the assessee which was subsequently confirmed by the Ld. CIT(A). Similarly, we also confirm the deletion as made by the learned CIT-A in the appeal of the Revenue. Hence, the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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