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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI R.C. SHARMA & SHRI PAWAN SINGH
O R D E R PER R.C. SHARMA, ACCOUNTANT MEMBER
This is an appeal filed by the assessee against the order of CIT(A)- 2, Mumbai dated 05/09/2018 for A.Y.2012-13 in the matter of order passed u/s.143(3) of the Income Tax Act, 1961.
The only grievance of the assessee relates to disallowance made u/s.14A of the IT Act.
Nobody appeared on behalF of the assessee inspite of issuance of notice, Bench therefore, decided to hear and pass the order after hearing the ld. DR and considering the material placed on record.
We have gone through the orders of the authorities below and found that assessee is engaged in export of made-up and handicrafts. During the course of scrutiny assessment, AO computed disallowance u/s. 14A with respect to the exempt income. It was contention of assessee that investment on which assessee has not got any exempt income should be excluded while computing disallowance u/s.14A. However, AO did not consider the same. As per our considered view, no disallowance is warranted on the investments which did not yield any exempt income. Accordingly, we restore the matter back to the file of the AO for recomputing disallowance u/s.14A after excluding the investments on which assessee did not derive any exempt income.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on this 24/02/2020