Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 960 - AT - Income TaxDisallowance u/s. 14A r.w. r. 8D - Held that:- Audit fees and legal & professional charges expenses in our considered view do not attract the provisions of section 14 of the Act. The expenses to be disallowed under Rule 8D(20(iii) cannot exceed the actual expenses incurred by the assessee. However, the AO has made the disallowance of the expenses under rule 8D(iii) exceeding the actual expenses. The act of making the disallowance by the AO under rule 8D(iii) shows that no reference has been made to the books of accounts of the assessee. In such a situation we are of the view that the disallowance u/s. 14A v-z-a-viz Rule 8D of the I.T. Rules has been made without complying the provisions of law. Thus the addition cannot be sustained in the instant case. Thus, we direct the Assessing Officer to delete the impugned addition. Thus, first issue in grounds of appeal filed by the assessee is partly allowed. Addition made u/s 14A while computing the income under the head 115JB - MAT - as per assessee only the sum of ₹ 9,45,104.00 is as inadmissible under section 14A relating to dividend income which would be eligible for addition while computing the book profit under section 115JB - Held that:- The apportionment of the expenses between the dividend income and the long term capital gain becomes relevant while determining the profit under section 115JB of the Act. Therefore we are inclined to reverse the order of Authorities Below. Case of M/s Maxopp Investment Limited (2018 (3) TMI 805 - SUPREME COURT OF INDIA) followed - Decided in favour of assessee
|