Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1884 - AT - Income TaxDisallowance u/s 14A - Reasonable allocation of expenditure - As argued by assessee entire expenditure debited by assessee in its profits and loss account could not be said to have been incurred only for earning exempt income under the Act - HELD THAT:- Reasonable allocation of expenditure has to be made which can be attributed to the income which is chargeable to tax particularly bank interest income of ₹ 33.80 crores as against dividend income of ₹ 12.07 crores (approximately). Expenditure of ₹ 4,77,890/- as worked out by assessee, the details of which are mentioned by AO at page 2 of the assessment order, is reasonable to make disallowance u/s 14A with Rule 8D. Accordingly, we restrict the disallowance to ₹ 4,77,890/- by reversing the orders of authorities below and thus, allow the grounds of appeal taken by assessee.
|