Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 1023 - AT - Income TaxDisallowance u/s 14A of the Act r.w. Rule 8D of the Rules Held that:- The decision in Godrej & Boyce Mfg. Co. Ltd. v/s DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] followed rule 8D is not applicable prior to the assessment year 200809 thus, the order set aside and the matter remitted back to the AO for fresh adjudication If the assessee has sufficient interest free funds for making the investment in shares of subsidiary company, then no disallowance of interest expenditure should be made - The Assessing Officer is also directed not to apply the provisions of Rule-8D for the assessment year - Decided in favour of Assessee. Addition on account of CENVAT credit in valuation of stock Held that:- The component of CENVAT has to be added to the closing stock and adjustment has to be made accordingly in the opening stock - The assessee submitted that the adjustment has to be made on the purchases also the contention of the assessee is accepted for the purpose of valuation of purchase and sale of goods and inventories adjustment on account of tax, duty, cess or fee, actually paid or incurred by the assessee has to be made in view of the provisions of section 145A of the Act thus, the Assessing Officer is directed to make necessary adjustment and give CENVAT credit on account of purchases also Decided partly in favour of Assessee.
|