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TMI Blog2022 (1) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... d to make disallowance by applying computation mechanism provided in 2nd and 3rd limb of Rule 8D(2) of the Rules and arrived at the disallowance and after reducing the voluntary disallowance made by the assessee, the net disallowance was made under section 14A of the Act in the assessment. This action of the AO was upheld by the ld. CIT(A). We find that the law is now very well by the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt by : Shri Manpreet Duggal (Sr. DR) ORDER PER M. BALAGANESH, AM: 1. This appeal of the assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals) -24, Mumbai [hereinafter referred to as the ld CITA] in Appeal No. CIT(A)-24/ACIT-15(1)(2)/IT-694/2016-17 dated 27.12.2018 against the order passed by the Learned Asstt. Commissioner of Income Tax, Range 15(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that assessee had earned exempt income to the tune of ₹ 8,64,141/- against which the assessee had made voluntary disallowance of expenses to the tune of ₹ 14,57,932/- under second limb of Rule 8D(2) of the Rules. 4. We find that assessee pleaded that separate books of account are maintained for his proprietary concern and for his personal activities. It was pleaded that in propri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e law is now very well by the decision of Hon ble Supreme Court in the case of Maxopp Investments (402 ITR 640) wherein it has been held that disallowance under section 14A of the Act cannot exceed exempt income. There is no dispute that the exempt income derived by the assessee is only ₹ 8,64,141/-. The assessee before us is not seeking any reduction for disallowance of expenses made volunt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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