Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1641 - HC - Income TaxDisallowance u/s 14A - assessee has been made investment of interest bearing funds in the partnership firm profit of which was exempt - Held that:- As decided in M/S. SWASTIK COAL CORPOATION PVT. LTD., INDORE [2016 (3) TMI 1333 - ITAT INDORE] it has to be necessarily held that once the appellant has earned substantial taxable income from investment in partnership firm and the Exempt Income earned being merely 3% of the substantial taxable income earned by the appellant the disallowance has to be made in the ratio of Exempt/Taxable income and accordingly, disallowance made under rule 8D has to be proportionately reduced. The disallowance made is hereby directed to be reduced accordingly and appellant shall get consequential relief. We uphold the action of the CIT(A) in restricting the addition to the ratio of exempt income to taxable income. - Decided against revenue.
|