BALBIR SINGH MAKKAR,NEW DELHI vs. ACIT, NEW DELHI

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] - 20 New Delhi dated 19.12.2016 pertaining to Assessment Year 2012-13.

The solitary grievance of the assessee is that the CIT(A) erred in law and on facts in sustaining the impugned addition of Rs. 1,43,261/- on account of disallowance as per section 14A of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] r.w.r 8 D of the I.T. Rules, 1962.

Briefly stated, the facts of the case are that the assessee earned dividend income of Rs. 20,735/- and claimed the same to be exempt. Invoking the provisions of section 14A of the Act r.w.r 8D of the Rules, the Assessing Officer computed the disallowance at Rs. 1,43,261/-.

The assessee carried the matter before the ld. CIT(A) but without any success.

Before us, the ld. counsel for the assessee vehemently stated that on the facts of the case, section 14A of the Act r.w.r 8D of the Rules is not applicable.

Per contra, the ld. DR strongly supported the findings of the Assessing Officer.

We have carefully considered the orders of the authorities below.

In the result, the appeal filed by the assessee in is partly allowed.