The Tax Publishers2020 TaxPub(DT) 4832 (Guj-HC)

INCOME TAX ACT, 1961

Section 14A Rule 8D

Disallowance under section 14A read with rule 8D could not exceed exempt income; the Tribunal was justified in restricting disallowance under section 14A read with rule 8D to the extent of exempt income earned by assessee during the relevant year.

Disallowance under section 14A - Expenditure against exempt income - Disallowance exceeding exempt income -

Issue under consideration was whether Tribunal was justified in restricting disallowance under section 14A read with rule 8D to the extent of exempt income earned by assessee during the relevant year. Held: Disallowance under section 14A read with rule 8D could not exceed exempt income. Therefore, as disallowance under section 14A read with rule 8D could not exceed exempt income; the Tribunal was justified in restricting disallowance under section 14A read with rule 8D to the extent of exempt income earned by assessee during the relevant year.

REFERRED : CIT v. Vision Finstock Limited, Tax Appeal No.486 of 2017 : 2018 TaxPub(DT) 4820 (Guj-HC) CIT v. Vision Finstock Limited, S.L.P (Civil) Diary No.13152 of 2018 (SC) : 2018 TaxPub(DT) 5001 (SC) CIT-I v. Majestic Auto Limited, (2009) 178 Taxman 148 (P&H) : 2009 TaxPub(DT) 1339 (P&H-HC) Pr. CIT v. Gujarat Fluorochemicals Limited, Tax Appeal No.11 of 2019 : 2019 TaxPub(DT) 5201 (Guj-HC).

FAVOUR : In assessee's favour

A.Y. : 2013-14



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