Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1854 - AT - Income TaxDisallowance u/s 14A of the Income Tax Act, 1961 read with rule 8D of the Income Tax Rules, 1962 - average investments - HELD THAT:- The undisputed facts of the case are that the assessee is a banking company and is carrying on by Banking business - The ld AR submitted that shares/securities are held in the ordinary course of business as investments in the shares/securities are part of assessee activity. It is only by virtue of investments in the securities held as stock in trade the dividend accrued to the assessee and it is settled law that provisions of section 14A rule 8D are not applicable to such case. In the latest CIRCULAR NO. 18/2015, F.N 0.2 79/Misc./140/20 IS/IT J, Government of India, Ministry of Finance, Directorate of Income-tax Legal & Research, New Delhi, 2nd November, 2015, vide para 3 it has been provided that the income arising from such investments is attributable to the business of banking falling under the head "Profits and Gains of Business and Profession”. T/he AO is directed to delete the disallowance u/s 14A of the Act - appeal of assessee allowed.
|