Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 700 - AT - Income TaxDividend - assessee claimed the entire dividend income as exempt - CIT exercised the powers of revision of the assessment order u/s 263 - CIT directed the AO to invoke the provisions of Section 14A of the Income-tax Act, 1961 – Held that:- As per the provisions of section 14A read with Rule 8D. Assessing Officer shall determine the amount of expenditure incurred in relation to such exempt income in accordance with the provisions of Section 14A read with Rule 8D. AO had not discussed about the expenditure relating to dividend income earned by the assessee. Therefore, the ld. CIT was justified in remanding the matter to the AO by invoking the provisions of section 263 of the I.T. Act However, the ld. CIT has directed the AO to apply the provisions contained in Rule 8D which are applicable from A.Y. 2008-09 - order of CIT modified to this extent - Assessing Officer should decide the issue in accordance with the guidelines laid down in the case of Godrej & Boyce Mfg. Co. Ltd. (2010 (8) TMI 77 (HC)) and compute the disallowance. - Appeal filed by the assessee is allowed for statistical purposes.
|