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Income Tax Appellate Tribunal, “A”, BENCH MUMBAI
Before: SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM
PER R.C.SHARMA (A.M): This is an appeal filed by the revenue against the order of CIT(A), Mumbai, for the assessment year 2010-2011
In this appeal the revenue is aggrieved for restricting disallowance u/s.14A to Rs.1,99,825/- in place of disallowance made by AO at Rs.35,38,248/-.
Rival contentions have been heard and record perused. In the course of assessment, the AO made disallowance by computing interest and other expenses as per rule 8D. By the impugned order the CIT(A) restricted the disallowance to the extent of expenditure actually incurred.
We have considered rival contentions. As per our considered view, disallowance u/s.14A cannot be more than the actual expenditure claimed by the assessee. Only the expenditure which have been incurred for earning the exempt income can be disallowed u/s.14A. Since the CIT(A) has restricted the disallowance to the extent of an actual expenditure of Rs.1,99,825/-, we do not find any reason to interfere in the order of CIT(A).
In the result, appeal of revenue is dismissed. Order pronounced in the open court on this 01/06/ 2016. (RAM LAL NEGI) (R.C.SHARMA) न्यानयक सदस्य / JUDICIAL MEMBER ऱेखा सदस्य / ACCOUNTANT MEMBER भुंफई Mumbai; ददनांक Dated 01/06/2016 प्र.कु.मभ/pkm, नन.स/ PS आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : अऩीराथी / The Appellant 1. प्रत्मथी / The Respondent. 2. आमकय आमुक्त(अऩीर) / The CIT(A), Mumbai. 3. आमकय आमुक्त / CIT 4. ववबागीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai 5. गार्ा पाईर / Guard file. 6. आदेशाि सार/ BY ORDER, सत्मावऩत प्रनत //// उप/सहायक पुंजीकार (Asstt.