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Income Tax Appellate Tribunal, DELHI BENCHES : SMC-I : NEW DELHI
Before: SHRI R.S. SYAL
ORDER This appeal filed by the assessee is directed against the order passed by the CIT(A) on 20.01.2015 in relation to the assessment year 2010-11.
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.
The AO computed disallowance u/s 14A read with Rule 8D at Rs.5,47,189/-. The ld. CIT(A) restricted the disallowance to the amount of exempt income at Rs.3,25,236/-. The assessee is aggrieved against the sustenance of disallowance to this extent.
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.
The order pronounced in the open court on 20.07.2016.