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2023 (4) TMI 981 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- We direct exclusion of Maple e-Solutions Ltd., Datamatics Financial Services Ltd. (Seg.) and Goldstone Infratech Ltd.(Seg.) on RPT of more or less than 25% or financial results of a company are not reliable due to fraud committed by the directors. Disallowance u/s 14A - A.R submitted that the assessee has received only dividend income from mutual funds and hence the disallowance will be very much on the higher side - HELD THAT:- We agree with the contention of learned AR that the provisions of Rule 8D cannot be applied during the year under consideration, i.e., AY 2006-07 - we also agree with the contention of learned DR that some disallowance is called for, since the assessee would not have earned exempt income without incurring some expenditure. As perused the balance sheet of the assessee and noticed that the assessee held mutual fund units of Grindlays Cash Fund as at the beginning of the year and it is stated that the dividend has been received from the said units. The said unit has also been sold during the year under consideration. Activities carried on by the assessee in the investment portfolio, we are of the view that an adhoc disallowance of Rs. 30,000/- may be made under section 14A of the Act and, in our view, the same would meet the requirement of section 14A . Appeal filed by the assessee is partly allowed.
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