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2012 (10) TMI 900 - AT - Income TaxDisallowance u/s 14A - assessee contested that dividend income was only incidental was not tenable - Held that:- As decided in GODREJ AND BOYCE MFG. CO. LTD. Versus DEPUTY COMMISSIONER OF INCOME-TAX AND ANOTHER [2010 (8) TMI 77 - BOMBAY HIGH COURT] disallowance u/s 14A r.w.r. 8D is not retrospective and is applicable from Assessment Year 2008-09 and disallowance for earlier period to be determined on reasonable basis - as assessment year in appeal is 2007-08 the case is remitted back to the file of the AO with a direction to follow the decision of case - in favour of assessee for statistical purposes. Disallowance of payment of license fee u/s 40A(2) - Held that:- Revenue disallowed the entire expenditure excessive because it is paid to a director who is a common in both the companies but neither recorded as to how the payment was excessive compared to prevailing market rate for such payment nor has he brought out a comparable case on record to prove that the entire expenditure is excessive - restore this matter back to the file of the AO with a direction to pass a speaking order - in favour of assessee for statistical purposes.
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