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| The Tax Publishers2020 TaxPub(DT) 3273 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A Rule 8D
Where assessee did not earn any exempt income during the year, however, still it offered suo motu disallowance under section 14A, therefore, no additional disallowance under section 14A read with rule 8D could be made by Revenue.
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Disallowance under section 14A - Expenditure against exempt income - No exempt income earned by assessee -
Assessee-company did not earn any exempt income during the year. However, still it offered suo moto disallowance under section 14A while filing its return of income. AO disregarding the fact that the assessee did not earn any exempt income during the year, applied rule 8D and computed additional disallowance under section 14A after adjusting suo motu disallowance offered by the assessee. Held: It was undisputed fact that the assessee did not earn any exempt income during the year, however, still it offered suo motu disallowance under section 14A, therefore, no additional disallowance under section 14A read with rule 8D could be made by Revenue.
REFERRED : Pr. CIT 10 v. Huntsman International (India) (P) Ltd. [ITA 1619 of 2016, dated 30-1-2019], CIT-IV v. Holcim India (P) Ltd. (2014) 272 CTR 282 (Del) : 2014 TaxPub(DT) 3780 (Del-HC) and CIT (Central) 1 v. Chettinad Logistics (P) Ltd. (2018) 95 Taxmann.com 250 (SC) : 2018 TaxPub(DT) 4126 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 14A Rule 8D
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