Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1713 - AT - Income TaxDisallowance of expenses incurred for increasing the Authorized Share Capital of the Assessee - Held that:- This ground of the Assessee has to be decided against it in view of the decision of Hon’ble Supreme Court in the case of Brooke Bond India Ltd. vs. CIT (1997 (2) TMI 11 - SUPREME Court ) - Decided against assessee. Disallowance made u/s. 14A - Held that:- When there is no change in the value of investments or its composition from that of earlier years and when in earlier year the fact of non utilization of interest bearing funds having been accepted, we are of the view that no disallowance on account of interest in the year under consideration is called for. As far as disallowance of administrative expenses is concerned, we find that that in appeal for A.Y. 07-08, the disallowance was restricted to ₹ 50,000/- by the Co-ordinate Bench but however for the year under consideration being A.Y. 2008-09 and since provisions of Rule 8D are held to be mandatory, we are of the view that the disallowance on account of administrative expenses be made as per the formula prescribed i.e. 0.5% of average investments meaning thereby that the disallowance u/s.14A be restricted to ₹ 1,78,175/- as against ₹ 10,20,670/- made by A.O. - Decided partly in favour of assessee.
|