Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 968 - AT - Income TaxDisallowance u/s 14A r.w.r 8D - Held that:- Disallowance made by AO was based on hyper technical approach and also ignoring the essence of Section 14A(1). AO also ignored this fact that the assessee has capitalized substantial amount of interest paid on loans taken for investment and the same was not claimed as business expenses by the assessee. Therefore, the apportionment on a pro rata basis was improper in the absence of anything brought by the Assessing Officer to establish a nexus between the expenses incurred and the exempted income earned on the investment which was a paramount requirement for making a disallowance u/s 14A(1). Commissioner of Income Tax(A) rightly held that the disallowance made by the Assessing Officer was not proper and justified and he limited the disallowance to the extent of ₹ 68,385/-. We are unable to see any reason to interfere with the impugned order.
|