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2018 (11) TMI 777 - AT - Income TaxExemption of interest income u/s. 10(15)(iv) - Interest earned on bonds issued by IIFCL - Held that:- We observe that such interest income is exempted as per CBDT Notification No.9/2009 dated 07/01/2009. We also observe that the interest earned on bonds issued by IIFCL has been claimed and allowed as 10(15)(iv) of the Act in subsequent years, i.e., in AY 2012-13, AY 2013-14 and AY 2014-15. The facts and law pertaining to the said matter remain the same throughout all the years including the year under consideration. The Revenue Authorities have consistently accepted that the interest earned on bonds issued by IIFCL is exempt u/s. 10(15)(iv) of the Act in the subsequent years. The principle of consistency is applicable in the instant case and the facts and law remaining the same, a contrary view on the said matter in the year under consideration would result in injustice to the assessee. Accordingly, we direct the AO to allow exemption of interest income u/s. 10(15)(iv) of the IT Act. Disallowance made u/s.14A r.w.Rule 8D2(iii) - Held that:- We observe that AO has taken average investment without reducing there from investment not earning any exempt income. In view of the decision of ITAT Special Bench in case of Vireet Investment[2017 (6) TMI 1124 - ITAT DELHI], we direct the AO to exclude investment not earning any exempt income while computing disallowance under Rule 8D(2)(iii). TDS credit - Held that:- We direct the AO to give TDS credit of ₹ 3,46,890/- after due verification.
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