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2014 (9) TMI 1266 - ITAT CHANDIGARHDisallowance u/s 14A read with rule 8D - disallowance made by the assessee suo-motto - HELD THAT:- The assessee claims that only net interest should be taken into account, while computing the disallowance u/s 8D(ii) of the IT Act. In the interest of justice and in view of the facts of the case, we restore this issue back to the file of AO for the limited purpose of determining the disallowance u/s 14A read with Rule 8D of the IT Rules and the computation would be worked out after verifying the claim of the assessee of netting of interest expenditure. Disallowance under Rule 8D(iii) of the IT Rules needs to be verified and we restore this issue also to the AO. Appeal are allowed for statistical purposes. Disallowance of interest on debit balance in the account of one of the partners - disallowance of interest being attributable to the negative balance of the partner, where cumulative balance of the other partners alongwith the partner having debit balance were to be considered in order to compute the disallowance under section 36(1)(iii) - HELD THAT:- The facts of the present case are identical to the facts before in Tex Designers [2014 (6) TMI 1067 - ITAT CHANDIGARH] and following the parity of reasoning, we hold that where the cumulative balance of the partner at the close of the year were on the credit side, there is no merit in any disallowance on account of interest being attributable to the debit balance of one of the partner - we direct the AO to delete the disallowance. - Decided in favour of assessee.
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