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Income Tax Appellate Tribunal, KOLKATA ‘B(SMC
Before: Shri P.M. Jagtap, Vice-
This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-2, Kolkata dated 13.07.2018 and the solitary issue involved therein relates to the disallowance of Rs.16,91,957/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) under section 14A of the Act read with Rule 8D of the Income Tax Rules, 1962.
I have heard the arguments of both the sides and also perused the relevant material available on record. The limited contention raised by the ld. Counsel for the assessee is that the actual exempt income in the form of dividend received by the assessee during the year under consideration being only Rs.1,700/-, the disallowance under section 14A 1 Assessment Year: 2013-2014 Siddheshwari Vyappar Pvt. Limited read with Rule 8D cannot be more than the actual exempt income received by the assessee and the same, therefore, should be restricted to Rs.1,700/-. Since this contention raised by the ld. Counsel for the assessee is duly supported, inter alia, by the decision of the Hon’ble Delhi High Court in the case of Joint Investments (P) Limited –vs.- CIT (59 taxmann.com 295), we direct the Assessing Officer to restrict the disallowance under section 14A read with Rule 8D to Rs.1,700/- and allow this appeal of the assessee partly.