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TMI Blog2024 (5) TMI 1363X X X X Extracts X X X X X X X X Extracts X X X X ..... t be sustained u/s 14A of the Act. Hon'ble Karnataka High Court in Pragathi Krishna Gramin Bank [ 2018 (6) TMI 1283 - KARNATAKA HIGH COURT] and in CIT vs. M/S. Corrtech Energy Ltd [ 2014 (3) TMI 856 - GUJARAT HIGH COURT] has clearly held so. In case of HSBC Invest Direct (India) Ltd [ 2019 (2) TMI 731 - BOMBAY HIGH COURT] has also held so that the disallowance u/s 14A of the Act cannot exceed the exempt income. In case of M/S Nirved Traders Pvt. Ltd. [ 2019 (4) TMI 1738 - BOMBAY HIGH COURT] has clearly held so - Appeal of the assessee is allowed. - Shri Prashant Maharishi, AM And Shri Sunil Kumar Singh, JM For the Assessee : Mr. Ninad A Patade, AR For the Revenue : Shri Rajesh Meshram, DR ORDER PER PRASHANT MAHARISHI, AM: 1. This appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l: 2:1 The Appellant craves leave to add, alter, amend and/or substitute and/or modify in any manner whatsoever modify all or any of the foregoing grounds of appeal at or before the hearing of the appeal. 3. Before us, the only grievance of the assessee which has been raised and argued is that disallowance under Section 14A of the Act should be restricted to the extent of exempt income of ₹3,00,000/-. For this proposition the learned Authorized Representative has submitted the decision of the Hon'ble Bombay High Court in ITA no.149 of 2017, M/S Nirved Traders Pvt. Ltd. Vs. DCIT dated 23rd April, 2019, wherein it has been held that the disallowance under Section 14A of the Act in excess of exempt income is not sustainable. 4. The b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned by the assessee is merely about ₹ 3 lacs and therefore, disallowance made by the learned Assessing Officer of ₹28.43 lacs is not sustainable. 7. The learned Departmental Representative supported the order of the lower authorities. 8. We have carefully considered the rival contentions and perused the orders of the lower authorities. Undisputed fact shows that assessee has earned exempt income of ₹3 lacs during the year. The assessee did not offer any disallowance and stated that it has not incurred any expenditure which earned the exempt income. The learned Assessing Officer invoked the provisions of Section Rule 8D of the Act and made disallowance of ₹28,43,433/- to the extent of total expenditure incurred. Now ..... X X X X Extracts X X X X X X X X Extracts X X X X
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