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2020 (4) TMI 650 - AT - Income TaxDisallowance u/s. 14A r.w.r. 8D - investments which yielded exempt income during the year for the purpose of computing average value of investment - HELD THAT:- Following the Special Bench decision in VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] we direct the AO to compute disallowance u/s. 14A r.w.r. 8D(2)(iii) by considering only those investments which yielded exempt income during the year for the purpose of computing average value of investment and accordingly, recompute the disallowance u/s. 14A r.w.r. 8D(2)(iii). TDS u/s 195 - disallowance u/s. 40(a)(ia) - fees for consultancy services rendered - DTAA between India and Mauritius/Austria/Germany, - HELD THAT:- Disallowances made towards the payments made to Mr. John Lyons, Mr. Walter Sturmer & Mr. Detlef Hasenfuss, since the relevant materials were not placed before the lower authorities, we deem it fit to remit these issues back to the AO for a fresh examination. The assessee shall lay relevant materials in support of its contention before the AO and comply with the requirements of the AO in accordance with law. AO is free to conduct appropriate enquiry as deemed fit, but he shall furnish adequate opportunity to the assesssee on the material etc to be used against it and decide the matter in accordance with law. With regard to the payment to HSBC, we find merit in the submissions made by the Ld. AR for the reason that this issue is covered by Article 11(3) - Since, the assessee has made out of a case under item (c) of Article 11(3), supra, the corresponding grounds of the assessee are allowed.
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