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Assessee had raised the plea that no disallowance u/s 14 A was warranted since the assessee was a dealer in shares .

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Sec. 40(a)(ia) of Income Tax Act, 1961—Business Disallowance— Similar issue was involved in assessee’s own case for earlier assessment year and the Tribunal decided the same in favour of the assessee upholding the decision of CIT(Appeals) deleting the similar disallowance made by the Assessing Officer under section 14 A read with Rule 8 D.

Facts: Assessee had earned income of Rs. 54,88,59,161/-, which was exempt from tax. In the computation of total income, expenditure in relation to the said exempt income was not disallowed by the assessee as required by section 14A. In the assessment completed under section 143 (3), the Assessing Officer worked out such expenses by applying Rule 8D at Rs. 36,60,39,331/- and disallowance to that extent was made by him under section 14A. On appeal, CIT(Appeals) deleted the said disallowance made by the Assessing Officer by relying on the decision of this Tribunal in the case of DCIT –vs.- Gulshan Investment Co. Limited [11 taxman. com 113].

Held, that it is observed that a similar issue was involved in assessee’s own case for A.Y. 2012-13 and the Tribunal decided the same in favour of the assessee upholding the decision of CIT(Appeals) deleting the similar disallowance made by the Assessing Officer under section 14 A read with Rule 8 D. It is, however, observed that this aspect has already been considered by the Tribunal while deciding a similar issue in favour of the assessee for A.Y. 2012- 13 - ASSTT. CIT V/s UCO BANK - [2020] 26 ITCD Online 088 (ITAT-KOLKATA)