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2013 (10) TMI 700 - ITAT COCHINDisallowance u/s 14A of the Income Tax Act - Method of computation of disallowance u/s 14A of the Act – Counsel of the assessee contends that Assessing Officer has included the "profit on sale of investments" amounting to ₹ 67.25 crores as exempted income and accordingly, computed the disallowance u/s. 14A of the Act – Held that:- Assessee has paid tax on the above said amount and hence, the Assessing Officer was not correct in treating the same as exempted income - Restored the issue to the file of the Assessing Officer with a direction to examine the above said claim of the assessee and, if satisfied with the same, re-compute the disallowance u/s. 14A accordingly – Decided in favor of Assessee. Interest u/s 244A of the Income Tax Act – Claim of interest by assessee on the statutory interest – Held that:- Reliance has been placed upon the judgment in the case of Sandvik Asia Ltd. vs. CIT [2006 (1) TMI 55 - SUPREME Court] - There was an inordinate delay on the part of the Revenue in refunding certain amount which included the statutory interest and therefore, directed the Revenue to pay compensation for the same not an interest on interest - Section 244A to the Act which provides for interest on refunds under various contingencies - It is only that interest provided for under the statute which may be claimed by an assessee from the Revenue and no other interest on such statutory interest – Issue to be set aside to the file of the assessing officer.
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