COMPETENT HOLDINGS PVT. LTD.,NEW DELHI vs. ACIT, CIRCLE-6(1), NEW DELHI

This appeal by the assessee is preferred against the order of the CIT(A)-33, New Delhi dated 13.09.2018 pertaining to A.Y.2014-15.

The solitary grievance of the assessee is that the CIT(A) erred in confirming the disallowance of Rs.577221/- made u/s. 14A of the Act.

Briefly stated the facts of the case are that the assessee earned dividend income of Rs.9,97,226/- which was claimed as exempt u/s.10 (34) of the Act.

During the course of the scrutiny assessment proceedings the assessee was asked to explain why the disallowance u/s.14A should not be made. 5. In its reply the assessee stated that the dividend income has been earned from the shares held as stock in trade duly reflected in its financial statements. The reply of the assessee did not find any favour with the AO who proceed by computing the disallowance u/s.14A r.w.r 8D and made addition of Rs.577221/-. 6. The assessee agitated the matter before the CIT(A) but without any success. 7. Before us the counsel for the assessee drew our attention to the decision of the Tribunal in assessee’s own case for A.Y.2013- 14 and pointed out that on identical set of facts the Tribunal has deleted the disallowance. 8. The DR placed strong reliance on the orders of the authorities below but could not bring any distinguish decision in favour of the revenue. 9. We have carefully considered the orders of the authorities below and find that on identical disallowance was considered by this Tribunal (supra). The relevant findings of the coordinate Bench read as under :-

Respectfully, following the findings of the coordinate Bench we direct the AO to restrict the disallowance to Rs.997226/- being 10% of the exempt income.

In the result, the appeal filed by the assessee is partly allowed. 12. The order is pronounced in the open court on 15.02.2022 in the presence of both the rival representatives.