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आदेश/Order
The present appeal has been preferred by the assessee against the order dated 28.08.2018 of the Commissioner of Income Tax(Appeals)-3, Ludhiana [hereinafter referred to as ‘CIT(A)’].
No one has come present on behalf of the assessee despite notice. Since a small issue of disallowance of expenditure incurred in relation to the earning of exempt income under the provisions of section 14A of the Income-tax Act, 1961 (in short 'the Act') is involved, hence, we proceed to decide the issue after hearing the Ld. DR.
The Ld. DR has invited our attention to the impugned order of the Assessing officer to submit that the assessee during the year had made investment in shares and mutual funds amounting to Rs. 3,24,79,868/-,
ITA No. 1399-Chd-2018- Sh. Rajnish Garg, Ludhiana 2
whereupon, the assessee earned dividend income of Rs. 2,34,919/-. That
though the assessee suo motu disallowed a sum of Rs. 1,01,546/- under
the provisions of section 14A of the Act, however, the assessee could not
justify it by giving the details of the same to the Assessing officer. The
Assessing officer, therefore, calculated the disallowance u/s 14A of the
Act read with Rule 8D (2)(iii) of the Income Tax Rules at 2,28,070/-. The
attention of the Tribunal was invited to the impugned order of the CIT(A)
that the Ld. CIT(A) has also held that the Assessing officer has computed
the disallowance as per the provisions of law. However, a perusal of the
order of the CIT(A) further reveals that the assessee has also furnished the
details regarding suo motu calculation of disallowance at Rs. 1,01,546/-.
A perusal of the order of the Assessing officer as well as of the CIT(A)
reveals that no fault has been pointed out in the working of the suo motu
disallowance made by the assessee.
Considering the amount of dividend income of Rs. 2.34 lacs and suo
motu disallowance made by the assessee of the expenditure for earning of
the aforesaid income at 1,01,546/- and also considering the fact that the
Assessing officer has not recorded any satisfaction regarding the working
of the suo motu disallowance made by the Assessing officer and also
further considering the fact that the assessee had not used any interest
bearing funds to make the investment, in my view, no further disallowance
is called for in this case except that has been suo motu offered by the
assessee. I, therefore, delete the addition made by the lower authorities to
the extent of disallowance offered by the assessee himself.
ITA No. 1399-Chd-2018- Sh. Rajnish Garg, Ludhiana 3
In the result, the appeal of the assessee is, therefore, treated as allowed. Order dictated and pronounced in the Open Court immediately on completion of hearing. Sd/-
(संजय गग� / SANJAY GARG) �या�यक सद�य/ Judicial Member Dated : 27.02.2019 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar