Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1952 - AT - Income TaxGP addition on AUDA and electric connection charges expenses - Alternative plea of re-quantification of the impugned addition in order to avoid double addition - HELD THAT:- As come on record that learned lower appellate authority has taken into account the relevant figures which already stood added as income in preceding assessment year. It is thus a case of consistency in the impugned assessment year visà-vis earlier assessment year qua the very issue. There is no material on record which could rebut this factual position. We therefore find CIT(A)’s approach to be consistent in re-computation of the impugned addition as per the relevant facts in preceding assessment year. The assessee therefore fails in his former substantive ground. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- There is no dispute about the fact that both the lower authorities have applied rule 8D whilst computing the impugned disallowance as applicable from assessment year 2008-09 onwards. The hon’ble apex court recent decision in Maxopp Investment Ltd. [2018 (3) TMI 805 - SUPREME COURT] settles the law that relevant expenditure in case of exempt income has to be apportioned between taxable and non-taxable income. The assessee’s arguments therefore challenging application of rule 8D in principle in light of section 14A are rejected. As alternative plea in view in the case of Joint Investments Pvt. Ltd [2015 (3) TMI 155 - DELHI HIGH COURT] that such disallowance cannot exceed the actual exempt income figure. Revenue fails to rebut this legal position. We therefore restrict the impugned disallowance to the extent of exempt income and delete the remaining disallowance component out - Assessee’s latter instant substantive ground is therefore partly accepted. This assessee’s appeal is partly allowed.
|