The Calcutta Stock Exchange Ltd. Vs. Assessing Officer, National e-Assessment Centre, Delhi

Parties Involved

Facts Summary

The assessee is a Stock Exchange with three types of investments: SBI FMP, mutual fund under Growth Option Scheme, and mutual fund yielding dividend income. The investments in SBI FMP and mutual fund in growth option were not considered for disallowance under section 14A of the Income Tax Act, 1961 as they were not supposed to yield any exempt income. Only the investment in mutual fund yielding dividend income was considered, leading to a disallowance of Rs.5,02,917/-. The assessee computed the disallowance correctly, and the disallowance as computed by the Assessing Officer (AO) and confirmed by the Commissioner of Income Tax (Appeals) was defective and could not be sustained.…

Legal Issues

• 1. Disallowance of Rs.11,54,278/- under section 14A of the Income Tax Act, 1961

Judgment Outcome

Decided in favour of Assessee.

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