M/S. MULTIPLEX CAPITAL LTD.,DELHI vs. ITO, NEW DELHI

The first issue raised in this appeal is against sustenance of disallowance u/s 14A to the tune of Rs.3,25,236/-.

Briefly stated, the facts of the case are that the assessee earned dividend income of Rs.3,25,236/- and claimed the same as exempt u/s 10(34) of the Act. The assessee did not offer any disallowance u/s 14A.

I have heard the rival submissions and perused the relevant material on record. It is noticed that similar disallowance was made by the AO and sustained in the first appeal for the immediately preceding assessment year, namely, 2009-10. When the matter came up for consideration before the Tribunal, the said disallowance stood deleted in vide the order dated 25.3.2015, whose copy has been placed on record. Admittedly, the facts and circumstances of the year under consideration are mutatis mutandis similar to those of the assessment year 2009-10. Respectfully following the order passed by the Division Bench in the assessee’s own case for the immediately preceding assessment year, I order for the deletion of the disallowance u/s 14A sustained in the first appeal.

The other ground about the confirmation of disallowance of Rs.66,000/- by invoking the provisions of section 40(a)(ia) was not pressed by the ld. AR. The same is, therefore, dismissed as not pressed.

In the result, the appeal is partly allowed.