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2014 (4) TMI 777 - AT - Income TaxDisallowance of expenses u/s 14A of the Act Nexus between expenditure incurred and the income not forming part of the total income - Held that:- Before the CIT(A), assessee contended that sufficient interest free funds were available with the assessee company and the disallowance u/s 14A was not warranted - the major income consisted of only commission, rent and there is no other business activity - The incurring of interest is in no way connected with earning of this income - out of total funds of Rs.12.75 crores, funds amounting to Rs.2.37 crores were invested in current assets and Rs.27.17 lacks were in the form of fixed assets and accumulated losses leaving behind net funds available to the assessee at Rs.10.11 crores only which were entirely invested in the said investments - the funds invested in the current assets are in the form of loans and advances which also are interest free advances the contention of the assessee that interest free funds were used in the partnership business cannot be accepted thus, there is no infirmity in the order of the CIT(A) Decided against Assessee.
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