Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 40 - AT - Income TaxDisallowance u/s. 14A r.w. Rule 8D - inclusion of dividend yielding investments - Held that:- In view of the decision of the Special Bench in the case of ACIT v. Vireet Investments Private Limited (2017 (6) TMI 1124 - ITAT DELHI), we direct the Assessing Officer to recompute the disallowance under Rule 8D2(iii) keeping in view the decision of the Special Bench wherein it has been held that only dividend yielding investments shall be considered for the purpose of computing the disallowance under Rule 8D2(iii). This ground is partly allowed. Interest income received by the assessee - assessed as business income or income from other sources -Held that:- Having money lending licence is not a precondition for having business income from money lending activity. Merely because there is no money lending licence, interest income cannot be treated as income from other sources. Nothing much would turn on that fact in deciding this issue. Following the principle of consistency, 1 hold that interest received by the appellant on loans and advances given to various persons is business income. The fact that there was no mention of money lending activity as business in Form 3CD also cannot be a ground to hold otherwise when interest income was assessed as business income in the past.
|