The Tax Publishers2020 TaxPub(DT) 3859 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 14A

Since assessee's own fund as well as interest-free fund were more than investment made in partnership firm, therefore, disallowance on account of interest under section 14A was not sustainable and in view of the decision of assessee's own case, matter was remanded back to AO for re-computing disallowance of interest after excluding owned funds and interest free funds.

Disallowance under section 14A - Expenditure against exempt income - Assessee's own fund as well as interest-free fund were more than investment -

Assessee earned share of profit from the firms which was exempt under section 10(2A). AO disallowed expenses incurred towards earning exempt income from investment made in the partnership firm.Held: Since assessee's own fund as well as interest free fund were more than investment made in partnership firm, therefore, disallowance on account of interest under section 14A was not sustainable in view of the decision of assessee's own case. Thus, issue was set aside to AO for re-computing disallowance of interest after excluding owned funds and interest free funds, as directed in findings of Tribunal in respect of disallowance under section 14A for the assessment years 2012-13 to 2014-15.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2010-11 & 2012-13 to 2014-15


INCOME TAX ACT, 1961

Section 153A Section 153C

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