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The Tax PublishersITA No. 3012/Pun/2017 2019 TaxPub(DT) 3013 (Pune-Trib)INCOME TAX ACT, 1961
Section 14A
As per section 14A(3), no disallowance could be made by AO if he had not issued any show cause notice before invoking the provisions of section 14A.
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Disallowance under section 14A - Expenditure against exempt income - No show cause notice issued before making disallowance -
AO made disallowance of expenses on the investments made in view of section 14A read with rule 8D. Assessee contended that no show cause notice was issued by AO before making disallowance under section 14A. Held: In case assessee had not made any suo motu disallowance of expenditure being relatable to the exempt income, then also AO had to record a satisfaction, for i.e., issue a show cause notice before invoking or applying the provisions of section 14A.
Relied:Godrej & Boyce Manufacturing Company Ltd. v. DCIT (2017) 394 ITR 449 (SC) : 2017 TaxPub(DT) 0968 (SC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 54B
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