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 625 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - HELD THAT:- As brought to our notice that no expenses were incurred by the assessee for earning the exempt income. AO was of the opinion since the assessee had taken certain loans, he made disallowance under Rule 8D of the Rules - loan expenses were for car loan, business etc and not for purchasing the shares or earning of the exempt income - disallowance at the most has to be restricted at 0.5% of the cost of investment. This ground of assessee is partly allowed to that extent. Profit on tea made out of purchased tea leaf - assessee has been consistently computing the respective income of Tea Estates in the state of West Bengal and Assam separately and computed the income of tea estates together practice/methodology of accounting has been consistently followed by the assessee for decades - HELD THAT:- AO while giving appeal effect of the ld. CIT(A)’s order for AY 2009-10 has accepted the computation of assessee (refer pages-57 of the P/B). Since we note that the assessee has been consistently following the computation of income separately for tea estates in West Bengal and Assam and computing the total income of tea estates together as per the doctrine of consistency the same ought to have been followed without disturbing the same. For that proposition we refer to the Hon’ble Supreme Court ‘s decision in RadhasoamiSatsang Vs. CIT [1991 (11) TMI 2 - SUPREME COURT]. Therefore, we direct the AO to adopt the pattern of computation as accepted by the department/consistently which was followed by the assessee and allow this ground of appeal.
|