Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (4) TMI 224 - DELHI HIGH COURT

2015 (4) TMI 224 - DELHI HIGH COURT - [2015] 374 ITR 108 (Del) - Disallowance under Section 14A - Held that:- The AO, instead of adopting the average value of investment of which income is not part of the total income i.e. the value of tax exempt investment, chose to factor in the total investment itself. Even though the CIT(Appeals) noticed the exact value of the investment which yielded taxable income, he did not correct the error but chose to apply his own equity. Given the record that had to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

3-2015 - S. Ravindra Bhat And R.K.Gauba JJ. For the Appellant : Mr. Salil Kapoor and Mr. Vikas Jain, Advs. For the Respondent : Mr. N P Sahni, sr. standing counsel MR. Justice S. Ravindra Bhat (OPEN COURT) CM No.16296/2014 Exemption is allowed subject to all just exceptions. The application is disposed of. CM No.16297/2014 For the reasons mentioned in the application the delay in refiling the appeal is condoned. The application is disposed of. ITA 615/2014 1. Admit. 2. Mr. N P Sahni, Advocate ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s of income. The AO added back ₹ 19,96,242/- under Section 14A. While doing so, the AO applied Rule 8D by taking into consideration the total quantum of interest other than that invested, under Section 14A in terms of Rule 8D, and arrived at the said figure after multiplying it with the result of the average value of investments and over average value of assets derived by him. He thus determined the disallowance of ₹ 19,96,242/-. The CIT(Appeals) went into the record and found that t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed the facts as to the value of the investment in tax exempt investment, and at the same time noticed that the ultimate result on an application of .05% disallowance would be same. Counsel for the revenue on the other hand, submitted that given the determination of average value of investment, the AO had no choice but to apply Rule 8D(2) in view of mandate of section 14A which required him to apply the prescribed method of determining disallowance. Facts as disclosed by the AO, who expressed his .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tal income. 8D. (1) Where the Assessing Officer, having regard to the accounts of the assessee of a previous year, is not satisfied with- (a)the correctness of the claim of expenditure made by the assessee; or (b)the claim made by the assessee that no expenditure has been incurred, in relation to income which does not form part of the total income under the Act for such previous year, he shall determine the amount of expenditure in relation to such income in accordance with the provisions of sub .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version