2016 (11) TMI 1681

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..... arned by assessee on account of dividend is 20,000/-. As we find that this issue is covered in favour of assessee as far as restricting the disallowance to the extent of exempted income only and for this placing reliance on the case of Daga Global Chemicals Pvt. Ltd. [ 2015 (1) TMI 1204 - ITAT MUMBAI] direct the AO to restrict the disallowance at 20,000/- and hence, this issue of the assessee s ap .....

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..... owance u/s 14A amount to ₹ 5,25,322/-. 2. i) On the facts and circumstances of the case and in law the AO and CIT (A) erred rejecting the revised return filled by Appellant. ii) the above ground may please be set aside to the CIT(A) or AO, as the grounds was not pressed before the CIT (A) due to miss communication between the appellant and its authorized representatives." 3. Briefly sta .....

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..... circumstances of the case. Admittedly, the only exempted income earned by assessee on account of dividend is ₹ 20,000/-. I find that this issue is covered in favour of assessee as far as restricting the disallowance to the extent of exempted income only and for this I am placing reliance on the Co-ordinate Bench decision in the case of Daga Global Chemicals Pvt. Ltd. Vs. ACIT dated 01-01-201 .....

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..... e the ld. Commissioner of Income tax (Appeals) broadly the stand taken in the assessment order was affirmed against which the assessee is in further appeal before this Tribunal. The totality of facts clearly indicates, as claimed by the assessee that no borrowed funds were utilized for earning the exempt income by the assessee and further the dividend were directly credited in the bank account of .....

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..... the assessee. The appeal of the assessee is therefore, allowed". I find that this issue is covered by the Coordinate Bench decision in the case of Daga Global Chemicals Pvt. Ltd. (supra). Respectfully following the same, I direct the AO to restrict the disallowance at ₹ 20,000/- and hence, this issue of the assessee's appeal is partly allowed. My view is fortified by the recent decision of .....

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