Case Law Details
Coffeeday Enterprises Ltd. Vs DCIT (ITAT Bangalore)
The issue under consideration is whether CIT(A) is correct in confirming the enhancement of disallowance made by the AO over and above the amount disallowed by the assessee u/s 14A of the Act?
ITAT states that, the assessee has received dividend income of Rs.8.47 crores and it has voluntarily disallowed a sum of Rs. 28.56 crores u/s 14A of the Act. ITAT also notice from the computation of income that, the assessee has also earned Long term capital gain of Rs. 13 crores and claimed the same as exempt. Thus aggregate amount of exemption claimed was Rs. 21.47 crores. ITAT also notice that the dividend income was received from one group company named M/s Mindtree Limited and the long term capital gain was also earned on sale of shares of M/s Mindtree limited. They notice that, as in the earlier year, the disallowance made by the assessee voluntarily is more than the amount of exempted income. Hence, they are of the view that the disallowance voluntarily made by the assessee would meet the requirements of sec.14A of the Act. Accordingly, following the order passed in AY 2013-14, ITAT are of the view that further disallowance made by the AO and confirmed by ld CIT(A) is not warranted in the facts and circumstances of the case. Accordingly ITAT set aside the order passed by ld CIT(A) on this issue and direct the AO to delete further addition made by him u/s 14A of the Act. In the result, the appeal filed by the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
The assessee has filed this appeal challenging the order dated 25/02/2020 passed by ld CIT(A)-11, Bengaluru and it relates to asst. year 2014-15.
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