Case Law Details
The assessee earned income by way of dividend. During the assessment u/s 143(3) of the Income Tax Act, 1961. The AO asked the assessee for the details of expenditure incurred for earning the exempted income (dividend income). The assessee contended that no expenditure was being incurred for earning the dividend income. On being dissatisfied with the assessee contention the AO invoked Rule 14A read with rule 8D and made the addition of Rs. 3,243,23/-.
On appeal by the department before Tribunal, the Tribunal affirmed the decision of CIT (A), that once 100% of expenses amounting to Rs.1,95,483/- claimed by him under the head Income from Other Sources has been disallowed separately by the AO, there is no reason to make any further dis allowance of expenditure u/s. 14A of the Act i.e., and as such Honorable ITAT pronounced in favor of assessee under a view that the AO has not considered the claim of the assessee and straight away embarked upon computing dis allowance under Rule 8D of the Rules on presuming the average value of investment at ½% of the total value following the following the coordinate bench decision in the case of J. K. Investors (Bombay) Ltd., ITA No.7858/Mum/2011, AY 2008-09 dated 13.03.2013.
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA
[Before Shri K. K. Gupta, AM & Shri Mahavir Singh, JM]
I.T.A No. 1809/Kol/2012
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