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Income Tax Appellate Tribunal, DIVISION BENCH ‘A’, CHANDIGARH
Before: SHRI SANJAY GARG & DR. B.R.R. KUMAR
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order
of the Commissioner of Income Tax(A)-2 (hereinafter referred to as ‘CIT(A)’) dt.
02/02/2018.
Sole issue raised by the Revenue in this appeal is against the action of the
CIT(A) in restricting the disallowance under section 14A of the Act in relation to
the expenditure incurred for earning of Tax exempt dividend income to the
extent of the tax exempt income earned by the assessee.
The Ld. CIT(A) restricted the disallowance under section 14A of the Act to
the extent of tax exempt income earned by the assessee by following the
decision of the Tribunal in the own case of the assessee for earlier A.Y’s 2008-09
and 2009-10. The issue, admittedly, is squarely covered by various decisions of
the High Courts including that of Jurisdictional Punjab and Haryana High Court
in the case of CIT Faridabad v. Lakhani Marketing INC 226 Taxmann 45 (P&H)
and also by the decision of Hon’ble Delhi High Court in case of Cheminvest Ltd.
Vs. CIT (2015) 378 ITR 33 (Del) and further of the Hon’ble Allahabad High Court in
the case of CIT Vs. M/s Shivam Motors (P) Ltd. (2014) 272 CTR 277 (All). In view of
this we do not find any infirmity in the order of the Ld. CIT(A) on this issue. There is
no merit in the appeal of the Revenue and the same is accordingly dismissed.
Order dictated and pronounced in the open Court on 04.09.2018
Sd/- Sd/- (DR. B.R.R. KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 03.12.2018 AG Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR