Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 706 - AT - Income TaxInterest accrued on securities but not falling due for payment - method of accounting - receipt basis vs accrual basis - dis-allowance of interest income u/s 14A while computing the book profit u/s 115JB Held that:- Interest accrues only on the specified coupon dates and not on day to day basis therefore, assessee is justified in offering the income for taxation on receipt basis. See DCIT vs. Bank of Bahrain and Kuwait (2010 (8) TMI 578 - ITAT, MUMBAI). Disallowance of interest income u/s 14A by applying the Rule 8D of the Income Tax Rules, 1962 while computing the book profit u/s 115JB - Held that:- In view of the decision taken in grounds of appeal no.1 in favour of the assessee, the disallowance to that extent is not sustainable. The disallowance on other income has to be computed as per the decision of Hon. Jurisdictional High Court in the case of Godrej & Boyce Mfg.Co.Ltd. Mumbai.Vs.Dy. Commissioner of Income Tax, reported [2010 (8) TMI 77 - BOMBAY HIGH COURT]. Accordingly set aside this issue to the record of the AO. Appeal of the assessee is partly allowed for statistical purposes.
|