Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 1097 - AT - Income TaxDisallowance of expenses for earning Dividend Income - quantum of computation of disallowance by invoking Rule 8D(2)(iii) of the IT Rules - Held that:- The Hon’ble Delhi High Court in the case of CIT Vs. Holcim India P. Ltd. reported [2014 (9) TMI 434 - DELHI HIGH COURT ] have held that if there is no exempt income earned during the year, they cannot be disallowed by invoking the provision of Section 14A of the Act. We direct the AO to exclude from the “average investment” those investments on which no dividend/income was received by the assessee in the current assessment year. For the above said purpose, the issue is restored to the AO. The AO shall afford reasonable opportunity of being heard to the assessee before re-computing deduction under Rule 8D(2)(iii) of the IT Rules. It is ordered accordingly. - Decided in favour of assessee for statistical purposes.
|