Akil Kureshi, J. - (1.) These appeals filed by the Revenue involve the same assessee. Facts are similar. We may record them from Tax Appeal No.1065 of 2018.
(2.) This appeal is filed by the Revenue to challenge the judgment of the Incometax Appellate Tribunal dated 17.11.2017. Following questions are presented for our consideration : "(a) Whether on the facts and in circumstances of the case, the learned ITAT has erred in law and on facts in not upholding the disallowance under section 14A of the Income Tax Act made by the Assessing Officer ? (b) Whether on the facts and in the circumstances of the case, the learned ITAT has erred in law and on facts in not upholding the disallowance under section 14A of the Income Tax Act made by the Assessing Officer and in deleting the disallowance even under Rule 8D(2)(iii) without considering that in any case, this disallowance was not dependent on whether investments were made out of interest free funds ?
(3.) The issue pertains to assessment year 201011. Respondent assessee is a registered company and is engaged in the business of manufacturing glass ware items, machinery and equipments for chemical glass and other industries and also in real estate development. During the assessment proceedings the Assessing Officer noticed that the assessee had earned dividend income of Rs. 1.24 crores (rounded off) which was claimed as exempt income under Section 10(34) of the Income Act, 1961 (for short 'the Act'). The assessee had on its own added back an amount of Rs. 1 lac as disallowance under Section 14A of the Act towards administrative expenses incurred for earning such exempt income. ;