Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 440 - HC - Income TaxDisallowance u/s 14A - Tribunal restricting the disallowance to the extent of expenses claimed - disallowance u/r 8D was made of ₹ 2.19 Crores against total expenditure of ₹ 24.19 - voluntarily disallowance by assessee of ₹ 7.79 Lakhs - HELD THAT:- Sub-section (2) of Section 14 of the Act provides that the Assessing Officer shall determine the amount of expenditure incurred in relation to such income which does not form part of the total income under this Act in accordance with such method as may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied with the correctness of the claim of the assessee in respect of such expenditure. Sub-rule (1) of Rule 8D also makes similar provision provides that where the Assessing Officer having regard to the accounts of the assessee is not satisfied with the correctness of the claim of expenditure made by the assessee or that the assessee claims that no expenditure has been incurred in relation to income which does not form part of the total income, the Assessing Officer would determine the amount of expenditure in terms of sub-rule (2). For applicability of sub-rule (2) of Rule 8D, the requirements of sub-rule (1) would have to be satisfied. Only then, the formula provided in the unamended clause would apply. In the present case, as noted, the assessee’s entire claim of expenditure in relation to its business activities was ₹ 24.19 Lakhs out of which, the assessee had voluntarily reduced sum of ₹ 7.79 Lakhs in relation to income not forming part of the total income. The Tribunal accepted such working out. Quite apart the correctness of the approach of the Tribunal, accepting stand of the Assessing Officer would lead to disallowance of expenditure far in excess of what is claimed by the assessee itself. No question of law arises.
|