2020 (1) TMI 1468

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..... As we can see, assessee total dividend income is 50,000/- so there cannot be disallowance of Rs. more than 50,000/- Respectfully following the above quoted judgment, we allow the appeal of the assessee.
Shri Mahavir Prasad, Judicial Member And Shri Waseem Ahmed, Accountant Member For the Appellant : Shri S.N. Soparkar, AR. For the Respondent : Shri Smair Tekriwala CIT & Shri Vidhyut Trivedi, Sr. D.R. ORDER Per Mahavir Prasad, Judicial Member 1. ITA Nos. 1163/Ahd/2018 & 1186/Ahd/2018 are cross appeals by the Assessee and the Revenue preferred against the order of the Ld. CIT(A)-1, Ahmedabad dated 27.02.2018 pertaining to A.Y. 2013-14 and assessee has raised the following grounds:- 1. In law and in the facts and circumstance of the .....

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..... e (A) Amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year; 0 0 (B) the average of value of investment, income from which does not or shall not form part of the total income, as appearing in the balance-sheet of the assessee, on the first day and the last day of the previous year; P.Y. Invest 31138510000 C.Y. Invest 36972630000 Total 68111140000 2 34055570000 PY+CY (C) The average of total assets as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year; P.Y, Assets 53958710000 C.Y. Assets 59509940000 Total 113468650000 2 56734325000 PY+CY (A) (B) (C) AXB/C Interest. Exp. JA) 0 Avg. .....

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..... ied in restricting the disallowance of ₹ 1,02,82,049/- made u/s. 14A of the Act to the extent of income earned of ₹ 55,604/- without appreciating that the assessee had paid interest of ₹ 1,45,52,632/- on borrowed funds?" 2. From the record it emerges that, during the period relevant to the assessment year 2008-09, the assessee had earned exempt income of ₹ 55,604/-. As against that, the Assessing Officer had worked out the disallowance of expenditure under section 14A of the Act read with Rule 8D to ₹ 1,02,82,049/-. The Tribunal, while restricting the disallowance to ₹ 55,604/-, relied on the decision of Delhi High Court in case of Joint Investments (P) Ltd vs. CIT reported in 372 ITR 694 holding t .....

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