ITA No.599/DEL/2018

Assessment Year: 2013-14

Appellant  by Sh. Rohit Jain, Advocate

Respondent by Ms. Rakhi Vimal, Sr. DR

This appeal by the assessee is preferred against the order of the CIT(A)-38, New Delhi dated 23.10.2017 pertaining to A.Y. 2013-14.

 2. The assessee is aggrieved by two additions first disallowance u/s.14A and second disallowance of interest u/s. 36 (1) (iii) of the Act.

3. Briefly stated the appellant is a member of Bombay Stock exchange and national stock exchange and is indulge in the business of share trading. During the course of the scrutiny assessment proceedings the AO noticed that the assessee has earned dividend income of Rs.364490/-. The AO noticed that the assessee has not disallowed any expenses for earning the exempt income u/s. 14A of the Act.

4. The AO was of the firm belief that disallowances u/s.14A r.w rule 8D has to be made and accordingly computed the disallowance at Rs.13.59 lacs.