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2020 (8) TMI 266 - AT - Income TaxCIT(A) powers of enhancement u/s 251(1) - Disallowance u/s 14A r.w. Rule 8D - HELD THAT:- The case of Kashi Nath Candiwala [2004 (12) TMI 21 - ALLAHABAD HIGH COURT] what was enhanced was a new source of income. AO in that case assessed to tax, income from business, after making certain additions on account of excessive claim of deduction. This source of income from business was enhanced by the ld. CIT(A) in that case. In the case on hand, the AO made a statutory disallowance u/s 14A - Under the circumstances, disallowance of salary is enhancement of income from a new source which was not considered by the AO. Thus, we agree with the argument of the assessee and quash the enhancement of the assessment by the ld. CIT(A). Appeal of the assessee is allowed.
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