Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 676 - AT - Income TaxDisallowance u/s 14A - HELD THAT:- No disallowance of interest expense claimed by the assessee can be made on account of investments as discussed above. Hence, we reverse the order of the authorities below. The AO is directed to delete the addition made by him. Hence the ground of appeal of the assessee is allowed. Disallowance on account of interest expenses under the provisions of section 14A read with rule 8D - HELD THAT:- Regarding the interest expenses, we note that in the identical facts and circumstances the impugned issue has been decided in favour of the assessee in his own case vide paragraph number 7 to 7.3 of this order. For the detailed discussion please refer to the relevant paragraph. Respectfully following the same we hold that there cannot be any disallowance on account of interest expenses. Regarding the disallowance of administrative expenses, we note that the AO has invoked the provisions of section 14A read with rule 8D mechanically without referring to the books of accounts of the assessee. As such the assessee has not claimed any expenditure against such exempted income. Therefore in our view there cannot be any disallowance of the expenses on account of exempted income. See RAKESH K. PATEL (HUF) VERSUS DCIT, CIRCLE-1 (2) , BARODA [2019 (7) TMI 1545 - ITAT AHMEDABAD] We hold that there cannot be any disallowance on account of interest and administrative expenses under the provisions of section 14A read with rule 8D - Decided in favour of assessee
|