DOUBLEDOT FINANCE LTD. Vs. DCIT
INCOME TAX APPELLATE TRIBUNAL
Doubledot Finance Ltd.
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Sanjay Garg, Member (J) -
(1.) THE present appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [(hereinafter referred to as CIT(A)] dated 29.01.13 relevant to assessment year 2009 -10.
The assessee has taken the following grounds of appeal:
1. The Learned Commissioner of Income Tax (Appeals) 8 has erred in confirming the disallowance at the rate of 0.50% of the average value of such investments (which includes some equity shares and infrastructure units on which no dividend had been received during the assessment year) under Rule 8D(2) (iii) of the Income Tax Rules. Where no exempt income has arisen out of such assets they cannot be a contributory to any expenses in connection with the exempt income.
2.THE Learned Commissioner of Income Tax (Appeals) 8 has erred in disallowing 0.50% of the average value of such investment which is in the nature of Growth schemes not having any provision of distribution of dividends. The Learned Commissioner of Income Tax (Appeals) 8 erred in considering Stock In Trade while working out disallowance under Rule 8D(2)(iii) of the Income Tax Rules.
3.THE Appellant craves leave to add, alter, amend or delete any or all of the above mentioned grounds of appeal.
(2.) At the outset, the ld. A.R. of the assessee stated at bar that he does not press ground No. 2. Hence, ground No. 2 is dismissed being not pressed.
Ground No. 1
(3.) Through ground No. 1 the assessee has raised the contention relating to disallowance under section 14A of Income Tax Act read with rule 8D(2)(iii) of the Income Tax Rules. It has been contended that no disallowance under Rule 8(2) (iii) of the Income Tax Rules can be made in respect of investments/assets which yielded no exempt income during the year. It has been submitted that the assessee during the year had made investments which included some equity shares and infrastructure units on which no dividend had been received during the assessment year in question. Hence, no disallowance could have been made in respect of such assets under Rule 8(2) (iii) of the Income Tax Rules.;
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