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| The Tax Publishers2020 TaxPub(DT) 1899 (Chen-Trib) INCOME TAX ACT, 1961
Section 14A
Since details of date of investments in shares and availability of funds on the date of investments were not available on record, therefore AO shall re-examine the matter and bring on record the actual dates of investments made in the shares, availability of the assessee's own funds on the date of investments and thereafter decide the issue afresh after giving a reasonable opportunity to assessee.
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Disallowance under section 14A - Expenditure incurred against earning of exempted income - No satisfaction recorded by AO -
Assessee-company had made investment for the purpose of earning dividend income which was exempt and incurred expenditure in relation to earning of exempted income. AO disallowed the expenses incurred under section 14A by invoking rule 8D of Income Tax Rules, 1962. Assessee case was that when sufficient own funds were available for making investment in the shares, then there could not be any disallowance towards expenditure Held: Details of the date of investments in the shares and availability of funds on the date of investments are not available on record. AO shall re-examine the matter and bring on record the actual dates of investments made in shares, availability of the assessee's own funds on the date of investments and investment which earned the exempted income and thereafter decide the issue afresh after giving a reasonable opportunity to assessee.
REFERRED : Maxopp Investment Ltd. [2018 (3) TMI 805 - SUPREME COURT ]
FAVOUR : In assessee's favour by way of remand
A.Y. : 2013-14
IN THE ITAT, CHENNAI BENCH
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