Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1602 - AT - Income TaxAddition u/s 14A - Held that:- As per the balance sheet on record, we found that assessee was having its own share capital and reserves of ₹ 10004.10/- lakhs as against the investment of ₹ 8094.70 lakhs. Since own capital and reserve was more than the investment, in terms of decision of the Bombay High Court in case of HDFC Bank [2014 (8) TMI 119 - BOMBAY HIGH COURT], no disallowance on account of interest is warranted. We direct the AO to delete the disallowance on account of interest made u/s.14A. With regard to the other disallowance made under Rule 8D(2)(iii), we found that assessee himself has offered disallowance of ₹ 38,000/-. We also found that most of the investments of the assessee are in group concerns which are required to be excluded from average investment while computing disallowance under Rule 8D. We direct the AO to recompute the disallowance under Rule 8D(2)(iii) after excluding the investment made in group concerns. We direct accordingly. Premium paid on medical insurance policy of Managing Director - Held that:- In the instant case the policy has been taken for the Managing Director of the Company who is a key personnel of the Company. However the terms of employment of Managing Director was not brought on record to substantiate the contention that premium so paid was for the benefit of company. Unless it is shown that premium so paid was for the benefit of company and not the personal benefit of Managing Director, the ratio laid down by Bombay High Court in the case of V.N. Export (2010 (3) TMI 186 - BOMBAY HIGH COURT) cannot be applied. We therefore, restore the matter back to AO for deciding afresh in terms of above observation.
|