Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 1029 - AT - Income TaxDisallowance u/s 14A - Held that:- Since the amount of interest debited to the Profit and Loss account was on net basis the disallowance of interest should also be made only with reference to the net interest. Before us, Revenue has not brought any contrary decision in its support for the proposition that gross interest has to be considered for the purpsoe of working out disallowance u/s 14A. Further it is a fact that for the year under consideration, the method prescribed by Rule 8D of the I.T. Rules for the working of disallowance u/s 14A is not applicable and therefore the disallowance has to be made on a reasonable basis as held by Hon’ble High Court in the case of Godrej and Boyce ((2010 (8) TMI 77 - BOMBAY HIGH COURT).). In such circumstances and in view of the decision in the case of Morgan Stanley (2014 (1) TMI 1412 - ITAT MUMBAI ) and in view of the fact that CIT(A) has upheld the disallowance u/s 14A we find no reason to interfere with the order or CIT(A) and thus this ground of Revenue is dismissed. Claim of interest expenses - Held that:- CIT(A) while allowing the claim of the Assessee has given a finding that the claim of Assessee was not a fresh one and hence there was no necessity of filing a revised return. CIT(A) further relying on the various decisions of High Courts has allowed the claim of the Assessee. Before us Revenue has neither brought any material on record to controvert the finding of CIT(A) nor has placed any binding contrary decision in its support. Further the case laws relied by the ld. D.R. are distinguishable on facts. In view of the aforesaid facts, we find no reason to interfere with the order of CIT(A) Taxing short term capital gain at a special rate when the appellant had loss - Held that:- It is assessee’s submission that Assessee also has capital loss of ₹ 86,130/- which should have been adjusted against the short term capital gain of ₹ 2,84,676/- earned by the Assessee and only the net short term capital gain should be taxed. Before us no details of the short term loss has been filed by the Assessee. Further before allowing the netting off of loss, the factual aspect needs examination and we therefore remit the issue to the file of A.O to verify the factual aspect and thereafter decide the issue in accordance with law. Assessee is also required to furnish the required details promptly before A.O.
|