Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 1418 - AT - Income TaxAddition made u/s 14A r.w.r. 8D - Held that:- Section 14A(3) of the Act specifically excludes applicability of section 14A(2) and shifts the burden entirely on Assessee to establish absence, if any, of expenditure disallowable under section 14A of the Act. Besides, Rule 8D(2)(iii) of the IT Rules, 1962 has been enacted for such eventualities where it is not possible to allocate the indirect expenditure towards administration, etc. with any scientific accuracy. No logic in the arguments of the assessee in so far as disallowance under Rule 8D(2)(iii) is concerned. However, in so far as disallowance of interest towards interest is concerned, we find that the averment made on behalf of the assessee that the own capital together with accumulated reserves are in excess of corresponding investment remains unrebutted. Therefore, in view of the long line of the judicial precedent on the issue, the disallowance towards proportionate interest under Rule 8D(2)(ii) is not sustainable in the facts. As a result, order of the CIT(A) is partially allowed in terms of our observations noted above. Appeal of the assessee is party allowed.
|