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2023 (6) TMI 669 - AT - Income TaxAddition u/s 14A r.w.s 8D - expenses incurred for earning exempt income - CIT(A) deleted the addition - HELD THAT:- As in the case before us, it was established that no interest bearing funds were used for investment to earn exempted income, no other expenses were incurred to achieve exempted income, the interest paid also has no nexus with the amount of investment in question, however, an exempt income was earned by the assessee in the form of dividend earned from long term investments. Therefore, disallowance u/s 14A r.w.r. 8D was not in accordance with law and therefore, the same is liable to be deleted, however, since, the assessee has gained an exempt income of Rs. 46,500/- during the relevant earlier year which was taken as Rs. 1,94,593/- by the ld. AO, this fact needs verification and thus, we restore the issue to the files of ld. AO, for the limited purpose - Appeal of the revenue is partly allowed for statistical purposes.
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