Section 14A of the Income-tax Act, 1961 – Expenditure incurred in relation not forming part of total income – Matter restored to the file of the CIT(A) to decide after considering the submissions of assessee and verify from the books of account that assessee was maintaining separate account.

Facts: Whether CIT(A) erred in confirming the addition on account of disallowance u/s 14A read with Rule 8D and he failed to consider and appreciate the detailed submissions made before him in a summary and mechanical manner.

Held, that CIT(A) has not considered the submissions of assessee that assessee was maintaining separate books of accounts and the expenditure related to the exempt income was not claimed in P&L account. It is further contended that the earning of dividend income is incidental to the business income of the assessee. Since CIT(A) has not decided these submissions of the assessee, we therefore, restore these grounds as well to the file of the CIT(A) to decide after considering the submissions of assessee and verify from the books of account that assessee was maintaining separate account. Grounds of the assessee are allowed for statistical purposes – VINITA DEVI BAGRODIA Vs. DY. CIT [2020] 181 ITD 355 (ITAT-INDORE)