2018 (6) TMI 1742

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..... HAT:- Disallowance under 14A of the Act in respect of exempted income earned by the assessee. AO admittedly computed the disallowance under clause (iii) of Rule 8D(2) of Income-tax Rules, 1962. Now the Assessing Officer claims that the disallowance ought to have been made under clause (ii) of Rule 8D(2). The fact remains that the assessee has filed details of investment and earning of exempted inc .....

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..... is deleted. Appeal filed by the assessee is allowed.
SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER For the Appellant : Ms. S. Sriniranjani, Advocate For the Respondent : Shri B. Sagadevan, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -8, Chennai, da .....

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..... e Act, unless the income escaped from assessment due to negligence of the assessee in furnishing full material facts before the Assessing Officer. In this case, according to the Ld. counsel, the dispute is with regard to computation of expenditure for earning the exempted income. The Assessing Officer found that the disallowance under Section 14A of the Act was computed under clause (iii) of Rule .....

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..... sessee, hence, the Assessing Officer has rightly reopened the assessment. 5. We have considered the rival submissions on either side and perused the relevant material available on record. The issue arose before the Assessing Officer was disallowance under 14A of the Act in respect of exempted income earned by the assessee. The Assessing Officer admittedly computed the disallowance under clause (i .....

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..... ce, the Assessing Officer is not justified in reopening the assessment. Therefore, we are unable to uphold the orders of the authorities below. Accordingly, the orders of both the authorities below are set aside and the disallowance made by the Assessing Officer is deleted. 6. In the result, the appeal filed by the assessee is allowed. Order pronounced on 19th June, 2018 at Chennai.
Case law .....

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