Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 1225 - AT - Income TaxDisallowance u/s 14A - sufficiency of own funds - Held that:- Assessee’s own funds in the form of share capital, reserves and surplus were ₹ 434.47 crore whereas the investments were only to the tune of ₹ 282.75 cr. which included the investments in subsidiary companies from strategic point of view. Thus, the interest free funds available with the assessee and therefore, the presumption has to be made that investments in the shares and securities were made out of interest free funds available with them. - Decided in favour of assessee. Disallowance u/s.14A while computing book profit u/s.115JB - Held that:- This issue is covered in favour of assessee by the decision of M/s. Vireet Investment Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] wherein it has been held that the computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated under section 14A read with Rule 8D of the Income Tax Rules. Thus respectfully following the said decision we restore this ground to the AO who shall decide the issue
|