M/S P N WRITER & CO PVT LTD,MUMBAI vs DY COMMISSIONER OF INCOME TAX CIRCLE 7(1),MUMBAI, MUMBAI

Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SHRI AMIT SHUKLA, JM & SHRI PRASHANT MAHARISHI, AM

For Appellant: Shri Priyesh Gansotta, Shri Shambhu Yadav, DR सुनवधईकीतधरीख/

For Respondent: Shri Shambhu Yadav

O R D E R

Per Amit Shukla, Judicial Member:

The aforesaid appeal has been filed by the assessee against the impugned order dated 22.03.2022, passed by National Faceless M/s P. N. Writer & Co. Pvt. Ltd. Appeal Centre (NFAC), Delhi for the quantum of assessment passed u/s 143(3) for AY 2009-10.

In various grounds, assessee has challenged the disallowance made u/s 14A on the ground that dividend income was only Rs. 85,439/- whereas the disallowance made by the AO and confirmed by Ld. CIT(A) is Rs. 9,36,209/-.

Now it is well settled that disallowance u/s 14A cannot exceed the exempt income which proposition upheld by Hon'ble Delhi Court in Pr. CIT v. Mc Donalds India (P.) Ltd. ITA 725/2018 decided on 22nd October, 2018 cannot exceed the exempt income of that year. This decision of the Hon'ble High Court follows the ratio and judgment of the Hon'ble Supreme Court in the case of Maxopp Investments Ltd. v. CIT [2018] 402 ITR 640/254 Taxman 325/91 taxmann.com 154 and the earlier judgments of the Delhi High Court in Cheminvest v. CIT [2015] 378 ITR 33/234 Taxman 761/61 taxmann.com 118 and CIT v. Holcim (P.) Ltd. [2015] 57 taxmann.com 28 (Delhi).

M/S P N WRITER & CO PVT LTD,MUMBAI vs. DY COMMISSIONER OF INCOME TAX CIRCLE 7(1),MUMBAI, MUMBAI