Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1887 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - HELD THAT:- Assessee has claimed by submitting the letter to the Assessing Officer and the Assessing Officer could not entertain the claim as it was not emanating from the return of income filed by the assessee. We note that the assessee may raise new grounds (for the issue which was not entertained by the AO during the appellate proceedings or before the Tribunal. We note as per the judgment of the Hon’ble Supreme Court in Goetz (India) Ltd. [2006 (3) TMI 75 - SUPREME COURT] the Assessing Officer may admit a new claim provided the assessee’s claim it by filing revised return of income and as per the judgement of Hon’ble Supreme court in Goetz (India) Ltd. [2006 (3) TMI 75 - SUPREME COURT], ld. CIT(A) and Tribunal may admit the additional claim/ground. We want to make it clear that the decision of Co-ordinate Bench of ITAT, Kolkata in REI Agro Ltd. [2013 (9) TMI 156 - ITAT KOLKATA] wherein it was held that it is only investment which yields dividend during the previous year that has to be considered while adjudicating the average value of investment for the purpose of rule 8D(2)(ii) and 8D(2)(iii) of IT Rules. The aforesaid view of Tribunal has been affirmed as correct by the Hon’ble Calcutta High court in GA No. 3581 of 2013 in the appeal against the order of the Tribunal in the case of REI Agro Ltd. supra. In addition to this, we note that if the assessee has its own funds and reserve which is more than investments made by the assessee then no disallowance is attracted u/s 14A read with Rule 8D(2)(ii) of the IT Rules, for that we rely on the judgment of Hon’ble Bombay High Court in the case of HDFC Bank Ltd. vs DCIT [2016 (3) TMI 755 - BOMBAY HIGH COURT] - we direct the AO to compute the disallowance after taking into account the aforesaid judicial precedents narrated above. Therefore, statistical purposes the appeal of the assessee is treated to be allowed.
|