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2022 (1) TMI 538 - AT - Income TaxDeduction under Chapter VI-A u/s 80IA - incurred towards sub-contract payments - HELD THAT:- As relying on own case [2022 (1) TMI 342 - ITAT HYDERABAD] we direct the AO to give/allow the deduction u/s 80IA(4) the expenditure of which was incurred towards sub-contract payments. In view of this, the ground is allowed. Disallowance u/s 14A read with rule 8D - HELD THAT:- CIT(A) after relying on various cases of ITAT as well as High Courts and Supreme Court, held that disallowance u/s 14A read with rule 8D cannot exceed the exempt income claimed by the assessee. He, therefore correctly restricted the disallowance to the extent of dividend received by the assessee i.e. ₹ 1,48,970/- and directed the AO to delete the balance amount of ₹ 50,25,20,230/-. MAT credit on deduction u/s 80IA - HELD THAT:- The finding of the CIT(A) that the MAT credit is held not to be eligible for deduction u/s 80IA as it is not directly linked to the eligible business but only comes into operation due to statutory provision. He relied on the decision of the Hon’ble Supreme Court in the case of Liberty India Vs. CIT [2009 (8) TMI 63 - SUPREME COURT] - Therefore, we find no reason to interfere with the decision and CIT(A) and upholding the same, we dismiss the grounds raised by the assessee on this count.
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