Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 1429 - AT - Income TaxDisallowance u/s 14A read with rule 8D - As submitted by assessee disallowance u/s 14A applying Rule 8D was made by the AO by taking into consideration the entire investment made by the assessee in shares instead of taking only that investment in shares which had actually earned dividend income during the year under consideration - HELD THAT:- Since this contention raised by the learned counsel for the assessee is duly supported by the decision of Hon’ble Kolkata High Court in the case of REI Agro Ltd. [2013 (12) TMI 1517 - CALCUTTA HIGH COURT] we direct the AO to re-compute the disallowance to be made by applying Rule 8D by taking into consideration only the investment made by the assessee in shares which actually fetched the exempt dividend income during the year under consideration. Ground No. 1 of the assessee’s appeal is accordingly is thus partly allowed. Interest paid by the assessee on TDS - allowable deduction u/s 37(1) - HELD THAT:- Thus issue is squarely covered in favour of the assessee by the decision of Mukand Ltd. vs ITO [2019 (1) TMI 1348 - ITAT MUMBAI] wherein it was held that interest paid on delayed payment of TDS is allowable as deduction u/s 37(1) of the Act. Respectfully following the said decision of the coordinate bench of this Tribunal, we delete the disallowance made by the AO and confirmed by the Ld. CIT(A) on account of interest paid by the assessee on TDS and allow Ground No. 2 of assessee’s appeal. Disallowance on account of entry tax liability - entry tax payable was not paid by the assessee before the date of filing of the return of income for the year under consideration. The same therefore was disallowed by him as per section 43B - HELD THAT:- The limited relief that is sought by the learned counsel for the assessee on this issue is that the AO may be directed to allow the deduction on account of the amount of entry tax in question in the subsequent years on payment basis. We are unable to give such direction for the subsequent years which are not in appeal before us. However the assessee is at liberty to claim such deduction on payment basis in the relevant years and the AO shall consider the same in accordance with law. Ground No. 3 is accordingly dismissed.
|