Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 467 - ITAT PUNEDisallowance u/s 14A - No exempt income earned - HELD THAT:- We are of the view that since no exempt income in the form of dividend has been earned by the assessee from the investments made and relying on the aforesaid decision of M/S CHETTINAD LOGISTICS PVT. LTD. [2018 (7) TMI 567 - SC ORDER] no disallowance u/s 14A of the Act is called for in the present case. We therefore direct the AO to delete the disallowance made by the AO. Thus, the ground of assessee is allowed. Disallowance u/s 40A(2)(b) - excessive or unreasonable payments made to specified persons - Expenses towards RCC Labour contractor / masonary work paid - HELD THAT:- In the present case, it is seen that AO has not done any exercise to determine as to whether the amount paid by the Assessee to the aforesaid two ladies were excessive or unreasonable by comparing the prevalent market rates. He has not arrived at an exact figure of excessive payment by comparing the amount paid by the assessee with the market rates for similar services but he has rather proceeded to disallow the expenses @ 5% on adhoc basis. We are of the view that in the present case, no case has been made out for disallowance u/s 40A(2)(b) of the Act and therefore no disallowance can be made u/s 40A(2)(b) of the Act. We therefore delete the disallowance made by the AO. Thus the ground of the Assessee is allowed.
|