Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1757 - AT - Income TaxDisallowance u/s 14A - interest attributable to other activities - attributing expenses towards earning of tax free income - HELD THAT:- In the present case, no exercise to segregate the interest attributable to other activities has been done and the entire interest has been apportioned by applying the ratio. It has been held in number of cases that application of Rule 8D is not automatic (CIT vs. I.P support services (P) Ltd.- [2015 (10) TMI 752 - DELHI HIGH COURT] ) and this is not the only repository for attributing expenses towards earning of tax free income. The Rule is to be applied where in the opinion of the A.O inadequate amount of expense has been attributed and the nature of tax free income is such against which expenses cannot be calculated except by resorting to Rule 8D. Disallowance of expenses related to tax free income made by the appellant is ₹ 2,62,459/- which is about 25% of the tax free income of ₹ 10,76,533/-. Find the expense already disallowed as sufficient to cover the requirement of Section 14A and Rule 8D. The ground of appeal is allowed. - Decided against revenue.
|