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| The Tax Publishers2020 TaxPub(DT) 4487 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A Rule 8D
Where expenditure apportioned/attributed by assessee to exempt income was more than reasonable, the AO was not justified in making disallowance under section 14A read with rule 8D over and above the suo moto disallowance made by the assessee and hence, the disallowance made by the AO was rightly restricted to the suo moto disallowance made by the assessee.
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Disallowance under section 14A - Expenditure against exempt income - Assessee made suo moto disallowance -
Assessee-company made suo moto disallowance under section 14A read with rule 8D. However, AO computed the disallowance under section 14A read with rule 8D over and above the suo moto disallowance made by the assessee. Further, CIT (A) restricted such disallowance to suo moto disallowance made by the assessee by following the decision of the Tribunal in assessee's own case for earlier assessment years. Aggrieved, Revenue was in appeal. Held: CIT (A) restricted disallowance under section 14A read with rule 8D to suo moto disallowance made by assessee by following Tribunal's decision in assessee's own case for earlier assessment years, wherein the Tribunal accepted the suo moto disallowance made by the assessee on the ground that expenditure apportioned/attributed by the assessee to exempt income was more than reasonable. Therefore, the CIT(A) was justified in restricting disallowance made by AO under section 14A read with rule 8D to suo moto disallowance made by the assessee.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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