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2012 (11) TMI 701 - AT - Income TaxAddition made on account of disallowance of Administrative & Other Expenses u/s.14A – Held that:- In the present appeal as well undisputed fact is that only one dividend warrant of Rs.4,55,829/- was received by the assessee. Indeed it was highly improbable and beyond rational view that in order to earn a dividend of Rs.4,55,829/-, that too by a single dividend warrant, the assessee had incurred a huge administrative expense as assessed by the AO. Newly inserted subsections to section 14A would be applicable from the Asst.Year 2007-08 and Rule 8D shall be effective from A.Y. 2008-09 because of the trite principle of law that the law which could apply to an Assessment Year is the law prevailing on the 1st day of April. Since the Respected Lower Authority has added only a trifle amount of Rs.60,000/- by disallowance u/s.14A, therefore without disturbing the same we hereby dismiss this ground of the Revenue.
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