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The Tax Publishers2020 TaxPub(DT) 2640 (Bang-Trib) INCOME TAX ACT, 1961
Section 14A
Where on issue of disallowance under section 14A, Tribunal decided in assessee's own case, that disallowance under section 14A could not exceed exempt income earned and those investments to be considered for the purpose of disallowance under section 14A which yield tax free income, and that when value of own funds exceeded value of investments, then no disallowance under section 14A was called for. Thus, AO was directed to decide issue in terms of Tribunal's order.
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Disallowance under section 14A - Expenditure against exempt income - Conditions precedent -
Issue was as regards validity of disallowance under section 14A read with rule 8D of Income Tax Rules, 1962. Held: Issue of disallowance under section 14A was also a subject matter of dispute in assessment year 2012-13 in assessee's own case. Tribunal in said case held that disallowance under section 14A cannot exceed the exempt income earned. Further, only those investments to be considered for the purpose of disallowance under section 14A which yield tax free income during the year. Further, where no separate books of accounts were maintained for earning tax free income and taxable income and value of own funds exceeded value of investments, then no disallowance under section 14A was called for. Following same AO was directed to reconsider case of assessee afresh in light of aforesaid binding decision.
Followed:M/s. United Spirits Limited v. Dy. CIT 2020 TaxPub(DT) 2352 (Bang-Trib)
REFERRED : Pragathi Krishna Gramin Bank v. The Jt. CIT (2018) 95 taxmann.com 41 (Karn) : 2018 TaxPub(DT) 4603 (Karn-HC) The CIT, The Dy. CIT v. M/s. Microlabs Ltd. (2016) 383 ITR 490 (Karn) : 2016 TaxPub(DT) 2372 (Karn-HC) The CIT v. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom) : 2009 TaxPub(DT) 1275 (Bom-HC) Asstt. CIT, Circle 17 (1), New Delhi v. Vireet Investment (P) Ltd. (2017) 165 ITD 27)(Delhi- SB) : 2017 TaxPub(DT) 1760 (Del-Trib)
FAVOUR : Matter remanded
A.Y. :
IN THE ITAT, BANGALORE BENCH
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