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2014 (8) TMI 107 - ITAT AHMEDABADInterest expenses u/s 14A r.w. Rule 8D – Held that:- Assessee had earned tax free income in the form of dividend which is exempt from tax - the interest free funds available with the Assessee are in excess of investments – Relying upon CIT vs. Amod Stamping P. Ltd.[2014 (7) TMI 753 - GUJARAT HIGH COURT] - when Assessee was having interest free funds far in excess of investment it can be said that the investments are made out of interest free funds - when interest income was more than the interest expenditure than the AO was not justified to invoke the provisions of Section 14A read with Rule 8D of the Act - disallowance of Rs. one lac on account of administrative expenses which has been upheld by CIT(A) and against which Assessee is not an appeal, no disallowance on account of interest u/s 14A read with Rule 8D is called for – Decided in favour of Assessee.
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