Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 396 - AT - Income TaxDisallowance of expenditure u/s 14A read with Rule 8D - whether disallowance u/s 14A read with Rule 8D can exceed the quantum of exempt income earned in a particular assessment year? - HELD THAT:- As per the settled legal principle in the decisions cited before us, the disallowance u/s 14A read with Rule 8D cannot exceed the quantum of exempt income earned during the year. In view of the aforesaid, we direct the Assessing Officer to restrict the disallowance under Section 14A read with Rule 8D to the exempt income earned during the year. In the result, additional ground is partly allowed. TDS u/s 194C OR 194I - payment towards bus hire charges and wharfage - Disallowance u/s 40(a)(ia) - order passed under section 201(1) and 201(1A) - HELD THAT:- Payments made towards bus hire charges and wharfage required deduction of tax at source under section 194C of the Act and accordingly, demand raised under sections 201(1) and 201(1A) cannot be raised. Admittedly, the assessee has deducted tax on both the payments applying the provisions of Section 194C of the Act. Thus, no infirmity in the decision of learned Commissioner (Appeals). Accordingly, ground raised is dismissed. In the result, the appeal is dismissed. Computing book profit u/s 115JB - whether disallowance under section 14A read with Rule 8D can be made - HELD THAT:- We are of the view, the issue is no more res integra in view of the decision of the Hon’ble Delhi High Court in PCIT Vs. Bhushan Steel Ltd [2015 (9) TMI 1424 - DELHI HIGH COURT] and the decision of the Hon’ble Special bench of the Tribunal in case of ACIT Vs. Vireet Investments (P.) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] wherein, it has been held that while computing book profit under section 115JB of the Act, no adjustment can be made with reference to Section 14A read with Rule 8D. In this view of the matter, we do not find any infirmity in the decision of learned Commissioner (Appeals) on the issue. Accordingly, ground raised is dismissed. In the result, appeal is dismissed.
|