Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 215 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D of the Act - Trading in shares – Shares treated as stock in trade – Held that:- The assessee is having income from sale of shares, interest accrued from saving bonds and other interests, which are on account of finance business - the disallowance u/s 14A only pertains to the administrative expenses which have been disallowed by the AO after applying the provisions of rule 8D and the same has been confirmed by the Commissioner (Appeals) - most of the expenditures are directly related to the assessee’s business - the AO without examining the nature of the expenses debited in the accounts of the assessee, has proceeded to apply the provisions of rule 8D - The provisions of rule 8D can only be triggered for the purpose of disallowance, when the AO is not satisfied having regard to the accounts of the assessee the correctness of the claim of the assessee in respect of such expenditure in relation to exempt income – thus, the matter is to be remitted back to the AO and directed to examine the nature of expenditure debited in the accounts, whether they are in any way attributable to the earning of exempt income or not – Decided in favour of Assessee.
|