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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI MAHAVIR SINGH & SHRI D. KARUNAKARA RAO
सुनवाई की तायीख / Date of Hearing : 02.11.2016 घोषणा की तायीख /Date of Pronouncement : 02.11.2016 आदेश / O R D E R PER D. KARUNAKARA RAO, AM:
This appeal filed by the assessee on 8.11.2013 is against the order of the CIT (A)-8, Mumbai dated 23.10.2013 for the assessment year 2010-2011.
The only issue raised in this appeal relates to the disallowance u/s 14A of the Act. Brief facts relevant for adjudication of the said issue includes that the assessee earned dividend income of Rs. 6,08,318/-. Assessee suo moto disallowed sum of Rs.30,000/- as expenditure disallowable u/s 14A of the Act. However, in the assessment made u/s 143(3) of the Act, AO mechanically applied the formula laid down in Rule 8D(2) of the IT Rules, 1962 (the Rules) read with section 14A of the Act. Accordingly, AO disallowed sum of Rs. 24,83,628/- under Rule 8D(2)(ii) and Rs. 4,53,425/- under Rule 8D(iii) of the Rules. Thus, net disallowance, after reducing Rs. 30,000/- (supra), works out to Rs. 29,37,054/- and the same is the subject matter of adjudication before us.