Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 51 - AT - Income TaxDisallowance u/s 14A read with rule 8D - HELD THAT:- The issue of disallowance of expenses u/s 14A relating to income not includable in the total income of the assessee has been dealt in various cases by the Tribunal and the High Courts wherein it was held that no disallowance is warranted in cases where no exempt income has been earned by the assessee. The Hon’ble Courts has also ruled that, at the most the disallowance should be restricted to the tune of the dividend earned. As relying on the case of Cheminvest Ltd. Vs CIT [2009 (8) TMI 126 - ITAT DELHI-B] we hereby direct that the disallowance be restricted to ₹ 1,320/-. Addition of sum paid to an associate concerns M/s Hero Global Design Ltd - AO held that since M/s Hero Global Design Ltd. is deriving income only from the assessee and does not have business expertise in providing engineering services, the expenditure claimed is disallowed - HELD THAT:- The copies of the invoices submitted by the HGD Ltd. have been examined. It is an undeniable fact that HGD Ltd. has provided services to the assessee, the design engineers of HGD Ltd. are regularly available within in the shop floor of the assessee company, they have been working for the last ten years with the assessee and getting paid regularly against their services. In view of this, we decline to interfere with the order of the ld. CIT (A) in deleting the addition. - Decided against revenue.
|