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TMI Blog2021 (10) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, following the decision of the Co-ordinate Bench as above we consider that decision of ld. CIT(A) in sustaining the part of the addition is not justified, therefore the impugned addition is deleted and appeal of the assessee is allowed on this issue. Disallowance u/s. 14A - Expenses incurred on earning exempt income - HELD THAT:- As in Adani Agro (P) Ltd. [ 2018 (2) TMI 1215 - GUJARAT HIGH COURT] wherein it is held that there was no question of disallowing administrative expenses u/s. 14A r.w.r. 8D in excess of the total administrative expenditure incurred by the assessee. In the light of the above, we restrict the disallowance u/s. 14A to the extent of ₹ 35,440/- as the amount computed by the assessee pertaining to the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase are discussed while adjudicating the two grounds of appeal filed by the assessee against the order of ld. CIT(A) as follows:- Ground No. 1(Addition of ₹ 35,440/- u/s. 14A of the Act while computing the book profit u/s. 115JB of the act) 4. During the course of assessment, the Assessing Officer has computed the disallowance of expenditure incurred for earning exempt income after applying the provision of section 14A of the Act r.w.r 8D of the Income Tax Rule to the amount of ₹ 4,53,348/-. The Assessing Officer has also added the aforesaid disallowance determined u/s. 14A while computing the book profit u/s. 115JB of the Act. 5. The assessee has filed appeal before the ld. CIT(A) against adding the disallowed amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of ₹ 4,53,348/- u/s. 14A of the Act) 8. During the course of assessment, the Assessing Officer noticed that assessee has received dividend income of ₹ 7,75,248/-. The assessee was asked about the disallowance made u/s. 14A of the act for earning exempt income. The assessee has submitted the ledger account of the investment made along with copy of bank account demonstrating interest free loan obtained for investment in the shares and securities during the year under consideration. The assessee has also itself calculated that the disallowance of interest expenses pertaining to the investment made to the amount of ₹ 3,54,408/-. The assessee has explained that no interest bearing fund has been utilized for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material on record, it is observed that during the course of assessment and appellate proceedings the assessee has submitted the detail and source of fund and investment made in shares and securities by referring the submitted detail the assessee has submitted before the lower authorities that it had not incurred any expenditure on account of interest in relation to the investment made in shares and securities during the year under consideration. The assessee company had furnished detailed source of investment along with the copies of ledger accounts and account of the bank book in support of its contention that investment was made out of interest free funds available with the assessee company. The assessee has also demonstrated in its subm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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