AMITA AVINASH PHADNIS,,PUNE vs. INCOME-TAX OFFICER, WARD - 11(5),, PUNE

The appeal was fixed for hearing on 06.11.2018 and thereafter it was adjourned at the request of assessee. Thereafter, the appeal was fixed for hearing on 24.12.2018 and 15.01.2019. However, none appeared on behalf of

The only issue raised in the present appeal is against disallowance made under section 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 (in short ‘the Rules’). On without prejudice basis, the assessee submitted that the disallowance be restricted to exempt income for the year under consideration in line with the ratio laid down by the Hon’ble High Court of Delhi in DCIT Vs. Joint Investment Pvt. Ltd. (2015) 372 ITR 694 (Del).

The issue raised on without prejudice basis i.e. in restricting the disallowance under section 14A of the Act is squarely covered by the ratio laid down by the Hon’ble High Court of Delhi in DCIT Vs. Joint Investment Pvt. Ltd. (supra). Applying the said ratio, we direct the Assessing Officer to restrict the disallowance under section 14A of the Act to the extent of exempt income i.e. ₹ 1,52,362/-. The grounds of appeal raised by assessee are thus, partly allowed.

In the result, appeal of assessee is partly allowed.