GST Helpdesk   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
GST - Acts SGST - Acts GST - FAQ GST Rates, Exemption CGST Notif. IGST Notif. Exempt Income Salary income
Extracts
Home List
← Previous Next →

2014 (9) TMI 1110 - ITAT MUMBAI

2014 (9) TMI 1110 - ITAT MUMBAI - TMI - Disallowance u/s 14A r.w.r. 8D - Held that:- A perusal of the profit and loss account of the assessee reveals that the assessee had a net positive interest income, under such circumstances, it cannot be said that the assessee had incurred interest expenditure for earning of exempt income. - For the remaining amount of expenditure on account of common administrative expenses is concerned, the disallowance of ₹ 8,61,509/- u/s 14A seems to be exces .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pose, in our view, the interest of justice will be well served if the disallowance u/s 14A is restricted to 10% of the remaining/common administrative expenses of ₹ 16,60,983/-. - Decided partly in favour of assessee - ITA No.2963/M/2013 - Dated:- 17-9-2014 - SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER Assessee by : Shri Kirit J Sheth, A.R. Revenue by : Shri B. Yadagiri, D.R. O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been filed by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not attributed any expenses incurred to earn the above exempt income. He therefore computed the disallowance under section 14A in accordance with the provisions of rule 8D at ₹ 8,61,509/-. 3. In appeal before the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)], it was submitted that the assessee had earned major part of income from professional fees and incurred expenses for the same. Out of the total administrative expenses of ₹ 5,99,14,291/-, a sum of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

quoted shares. However the ld. CIT(A) observed that since the assessee had earned dividend income, so assessee might have incurred some expenses in respect of the same. He therefore upheld the disallowance made by the AO as per the provisions of rule 8D of the I.T. Rules. Aggrieved from the order of the ld. CIT(A), the assessee has preferred the present appeal before us. 4. The ld. A.R. of the assessee, before us, has submitted that the assessee during the relevant assessment year has earned int .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

der section 14A was not justified rather the same should be apportioned in ratio of taxable income to exempt income. On the other hand, the ld. D.R. has relied upon the findings of the lower authorities. 5. We have considered the rival submissions of the ld. representatives of the parties. It may be observed that in the case of Godrej & Boyce Manufacturing Co. Ltd. 328 ITR 81, the Hon'ble Bombay High Court has held that under section 14A of the Income Tax Act, resort can be made to Rule .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ure is correct. The satisfaction of the AO must be arrived at on an objective basis. In a situation where the accounts of the assessee furnish an objective basis for the AO to arrive at a satisfaction in regard to the correctness of the claim of the assessee, there would be no warrant for taking recourse to the method prescribed by the rules. An objective satisfaction contemplates a notice to the assessee, an opportunity to the assessee to place on record all the relevant facts including his acc .....

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