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2016 (1) TMI 611 - AT - Income TaxDisallowance u/s 14A - CIT(A) computing interest pertaining to tax free income as per Rule 8D(2)(ii) of the IT Rules 1962 - Held that:- CIT(A)'s order upheld in relation to the working of interest under the provisions of section 14A of the Act concluding: i) The disallowance under Rule 8D will be calculated on the figure of investments only without taking stock in trade in the figure as investment ii) The amount of interest should be taken at an amount of ₹ 1,16,79,274/- after deducting ₹ 20,61,185/- and ₹ 53,62,859/- for the purposes of Rule 8D(2)(ii). iii) The disallowance is to be calculated by taking denominator of ₹ 37,02,71,649/- as total assets and not as ₹ 32,06,90,060/- of net assets. - Decided against revenue
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