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TMI Blog2022 (7) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee 1. On the facts and in the circumstances of the case and in law, the respondent prays that no disallowance ought to be made in absence of earning of any exempt income. 2. Without prejudiced to ground 1 above, on the facts and in the circumstances of the case and in law, the respondent prays that in case the disallowance under section 14A is to be made in accordance with Rule 8D as prayed by the Department, then the disallowance under section Rule 8D(3) ought to be restricted to Rs. 9,87,978/- basis the working of disallowance accepted by the Department in the past assessment year. (B) Grievance raised by the Assessing Officer. 1 "On the facts the circumstances of the case and in law, whether the Ld. CIT(A) was justified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost every issue, involved, i.e. whether a disallowance can be made when no exempt income has been earned during the year, whether the satisfaction has been correctly recorded by the AO regarding the correctness of the claim and in respect of such expenditure incurred in relation to exempt income, whether share application money is to be considered as investment, whether investment in subsidiary company or joint ventures can be said to be made with a view of earn exempt income etc. In the present case the admitted fact is that no dividend income or any other exempt income has been earned during the year under consideration. The present legal position established by the Delhi High Court in the case of Cheminvest Ltd. (61 taxmann.com 118), whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ai in our case in AY 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 & Honorable ITAT in our case in AY 2008-09, 2009-10, 2010-11 & 2011-12 and the department has not contested the same before higher authorities. The Ld. Assessing Officer may, therefore, be directed to restrict the disallowance u/s. 14A of the Income Tax Act, 1961 to Rs. 9,87,978/- in normal computation, as well as under section 115JB of the Act." 5. None of the parties is satisfied. While assessee is aggrieved of the disallowance being confirmed to the extent Rs.9,87,978, the Assessing Officer is aggrieved of the relief so granted by the CIT(A). Both the parties are in appeal before us. 6. We have heard the rival contentions perused the material on record and duly consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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