ACIT, MADURAI vs. RAJA RAM FLOUR MILLS P. LTD., TIRUMANGALAM

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-1, Madurai, dated 07.03.2017 and pertains to assessment year 2013-14.

The only issue arises for consideration is with regard to disallowance made by the Assessing Officer under Section 14A of the Income-tax Act, 1961 (in short 'the Act').

No one appeared for the assessee inspite of service of notice of hearing. Therefore, we heard the Ld. Departmental Representative and proceeded to dispose the appeal on merit.

We heard Smt. Ruby George, the Ld. D.R. and perused the relevant material available on record. The CIT(Appeals) found that the assessee has received dividend income only to the extent of ₹13,050/- during the year under consideration, which was claimed as exempted from taxation. By placing reliance on the judgment of Madras High Court in Redington (India) Ltd. v. Addl. CIT (2017) 1 TM 1318, the CIT(Appeals) found that the disallowance under Section 14A of the Act could be restricted only to the extent of ₹13,050/- which was received as exempted income. Since the CIT(Appeals) has followed the judgment of Madras High Court in Redington (India) Ltd. (supra), this Tribunal does not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

In the result, the appeal filed by the Revenue stands dismissed.