Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (10) TMI 386 - AT - Income TaxDisallowance - Rule 8D of the Rules 1962 - Once the expenditure held as having been incurred in relation to earning the tax free income within the meaning of section 14A it would corresponding ceased to be regarded as having incurred for earning taxable income and consequently would loose the deduction - The proximate cause is between the expenses and the taxable business income and not between the expenses and the tax free dividend income - The main contention of the assessee is that the said expenditure incurred for the purposes of business activity and therefore no part of the same can be attributed to the earning of the dividend income - Only that part of the expenditure which is incurred in relation to the income which form the part of the total income should be allowed - Accordingly, Rule 8D is not applicable for the assessment year under consideration - The appeal is partly allowed
|