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2017 (4) TMI 967 - AT - Income TaxAddition u/s 14A - Interest payment made by the partnership firm to the partners - Held that:- Interest expenditure incurred by the partnership firm on account of interest paid to the partners cannot be disallowed under provisions of section 14A of the Act. Decided in favour of the assessee It is found that the assessee had made investment in real estate funds and guilt funds. Income arising from such investments could be taxable. Hence same should not have been considered for computing the disallowance u/s. 14A.We find that AO/FAA has not made proper investigation in that matter. Therefore, in the interest of Justice, we are restoring that the issue to the file of the AO for fresh adjudication. He is directed to afford a reasonable opportunity of hearing to the assessee. The assessee-firm would produce the documents related to taxable generating funds.
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