Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 1668 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - Held that:- We do not find ourselves in agreement with the proposition that the Rule 8D of the Rules being mandatory, disallowance as per Rule 8D has to be made even in cases where no tax free income has earned or where tax free income earned is lesser than the amount computed as per Rule 8D of the Rules. In view of this, we direct the Assessing Officer to limit the disallowance made under section 14A of the Act read with Rule 8D of the Rules to the amount of tax free income earned by the assessee. This ground of appeal raised by the assessee is allowed. Addition of interest under section 36(1)(iii) - Held that:- This is an admitted fact in the present case that no specific loan was raised by the assessee for the purposes of purchase of this land. This is also a finding of fact recorded by the lower authorities that there were mixed funds available for this purpose with the assessee. On availability of mixed funds, it cannot be presumed by the Revenue that the borrowed funds have been used for the purposes of acquisition of said land. See DCIT Vs. Samrat Forging Ltd. [2012 (5) TMI 760 - ITAT CHANDIGARH] - Decided in favour of assessee.
|