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2014 (2) TMI 559 - AT - Income TaxDisallowance u/s 14A of the Act Held that:- The Assessee has earned dividend income of ₹ 1.75 crores - From the copy of the details of interest which has been reproduced by CIT(A) in its order, it is seen that the major interest component is on account of interest on salary paid to the employees as per the decision of Labour Court and Interest on Service Tax - no details are available as to the days on which the dividend was received the amount of dividends, the number of companies in which the Assessee holds investments thus, the disallowance made by the AO is not warranted but however a disallowance of Rs. one lac made u/s 14A would could be granted The AO is directed to disallow the disallowance u/s14A of the Act Decided partly in favour of Assessee. Disallowance expenses u/s. 14A of the Act - Disallowance of claim for depreciation Held that:- The CIT(A) has noted that the Assessee has itself claimed only aggregate expenditure in the return of income as against the aggregate expenditure debited to the Profit and Loss account - the nature of administrative expenses claimed by the Assessee was in respect of Audit fees, Conveyance, Bank Commission, Office maintenance etc. Relying upon CIT vs. New Savan Sugar and Gur Refining Company Ltd. [1989 (4) TMI 12 - CALCUTTA High Court] the expenditure was allowable in view of the fact that the company had to incur various expenditure as it has to maintain its establishment so long as it is in operation and its name is not struck off from the register of the Registrar of Companies - the expenditure made by the AO u/s 14A was already confirmed and the remaining expenditure on depreciation - the Revenue could not controvert the findings of CIT(A) nor has brought any material on records in support of its contention thus, there is no reason to interfere in the findings of CIT(A) Decided against Revenue.
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