2023 (8) TMI 37

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..... TMI 1738 - BOMBAY HIGH COURT] has held that disallowance under section 14A of the Act cannot be more than exempt income. No infirmity in the impugned order passed by the learned CIT(A). Accordingly, the grounds raised by the Revenue are dismissed.
Shri G.S. Pannu, President, And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Vipul Jain For the Revenue : Smt. Mahita Nair ORDER The present appeal has been filed by the Revenue challenging the impugned order dated 04/03/2023, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, ["learned CIT(A)"], for the assessment year 2013-14. 2. In this appeal, the .....

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..... urities. For the year under consideration, the assessee filed its return of income on 30/09/2013 declaring a total loss of Rs. 6,12,09,872 as per normal provisions of the Act and declared book loss under section 115JB of the Act of Rs. 5,89,71,529. The return filed by the assessee was selected for scrutiny and statutory notices under section 143(2) as well as section 142(1) of the Act were issued and served on the assessee. During the assessment proceedings, from the perusal of balance sheet it was observed that the assessee is having investment in equity shares of Rs. 33,47,29,488. Further, the assessee has shown dividend income from investments in equity shares of Rs. 9,55,880, which was claimed as exempt. It was further observed from the .....

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..... er, are reproduced as under:- "The Hon'ble Punjab & Haryana High Court in the case of Principle CIT vs State Bank of Patila (393 ITR 476) has held that disallowance under section 14A should be restricted to the exempt income earned. The Hon'ble Supreme Court of India in the case of Principle CIT vs. State Bank of Palila Teported as 99 taxmann.com 286 has dismissed the SLP of Revenue in the said case. Similar view has been taken by the Hon'ble Bombay High Court in the case of Principle CIT vs. Ballarpur Industries Ltd. (ITA No. 51/2016) decided on 13.10.2016 However, as per law settled by the Hon'ble Apex Court and Hon'ble High Court no addition can be made which is more than the income earned and respectfully followi .....

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