ITO, NEW DELHI vs. M/S. MODERATE LEASING & CAPITAL SERVICES LTD., NEW DELHI

O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is preferred by revenue against the order of the ld CIT(A)-V, New Delhi dated 06.06.2014 by which the disallowance of Rs. 99047514/- made by the ld Assessing Officer u/s 14A of the Income Tax Act vide order u/s 143(3) of the Act dated 05.12.2011 for AY 2009-10 was deleted. 2. The revenue has preferred following grounds of appeal:- “1. Whether on the facts and circumstances of the case and in law, the ld CIT(A) erred in deleting the additions of Rs. 99047514/- made by the AO on account of disallowance u/s 14A read with Rule 8D. 1.1 Whether on the facts and circumstances of the case and in law, the ld CIT(A) has ignored that the disallowance was made according to the section 14A read with Rule 8D of the Income Tax Rule?

2. Whether on the facts and circumstances of the case and in law, the ld CIT(A) has ignored that the facts of Asstt. Year 2011-12 are not similar to the asstt. Year 2009-10?”

3. The brief facts of the case is that the assessee company filed its return of income on 29.09.2009 for Rs. 3176580/-. During the year the assessee has received a sum of Rs. 1700/- as dividend and claimed the same as exempt. The ld Assessing Officer after show cause made disallowance u/s 14A of the Act amounting to Rs. 99047514/- applying provisions of Rule 8D. the assessee contested the same before the first appellate authority who recomputed the disallowance u/s 14A of the Act applying Rule 8D of the Income Tax Rules after remand report of the assessee at