ITAT restricts disallowance u/s 14A for earning exempt dividend to 1% of dividend

On the issue of dis allowance u/s. 14A, this Bench of the Tribunal has been taking a consistent view that this dis allowance should be restricted to 1% of dividend income. Following the same, in this appeal also we hold that the dis allowance u/s 14A for earning exempt dividend income should be restricted to 1% of dividend income. The Assessing Officer is accordingly directed to do so and work out the quantum of dis allowance. This ground of appeal of the assessee is allowed as directed above. INCOME TAX APPELLATE TRIBUNAL, KOLKATA ITA Nos. 2270 & 2271 (Kol) of 2010 –Assessment Years...