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2015 (6) TMI 208 - AT - Income TaxDisallowance u/s.14A - Held that:- As per Rule 8D of the IT Rules, 1962, the expenditure should be related to the exempt income which does not form part of the total income. Therefore, the AO should have verified whether the expenditure which he proposed to disallow related to the exempt income or not. In the case in hand, the assessee’s contention qua the interest expenditure is that it had sufficient interest-free funds and the investment has been made out of such funds. The fact that the expenditure is not related to the exempt income and the investment wherefrom exempt income is earned is made out of interest-free fund needs verification. Therefore, the issue is restored to the file of AO for verifying the contention of the assessee that the interest expenditure is not related to exempt income and also investment out of which exempt income is earned was made out of interest-free fund. In case, the AO finds the contention of the assessee is correct, he would delete the addition. - Decided in favour of assessee for statistical purposes Excess depreciation on vehicle - CIT(A) deleted the addition - Held that:- The assessee is required to demonstrate that assessee-company has purchased vehicles during the year under consideration, the delivery of such vehicles has also been taken and such vehicles were put to use for business purposes. It would not be sufficient that the assessee obtained the registration certificate from the state transport authority to prove that the vehicles have been put to use for business purposes. For claiming depreciation, onus is on the assessee that the vehicles so purchased have been put to business as in the case in hand delivery of vehicles to the assessee is not proved, however registration of vehicles is proved. In our considered view, the assessee should have furnished other evidences for proving that in fact vehicles were put to use. Therefore, the order of the ld.CIT(A) is hereby set aside. The issue of allowability of depreciation is restored to the file of AO for decision afresh. - Decided in favour of revenue for statistical purposes.
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