The Tax Publishers2020 TaxPub(DT) 4880 (Guj-HC)

INCOME TAX ACT, 1961

Section 14A read with Rule 8D

Where 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 : PCIT v. IL & FS Energy Development Company Ltd. (2017) 84 Taxman.com 186 (Delhi) : 2017 TaxPub(DT) 3890 (Del-HC) CIT v. Chettinad Logistics (P.) Limited (2017) 80 taxmann.com 221(Madras) : 2017 TaxPub(DT) 1144 (Mad-HC) Corrtech Energy (P.) Ltd (2014) 45 taxmann.com. 116 (Guj) : 2014 TaxPub(DT) 2072 (Guj-HC) Pr.CIT v. India Gelatine and Chemicals Ltd. (2016) 66 taxmann.com 356 (Guj) : 2015 TaxPub(DT) 3530 (Guj-HC) Joint Investments Pvt. Ltd. v. CIT (2015) 372 ITR 692 (Delhi) : 2015 TaxPub(DT) 1375 (Del-HC) CIT v. Chettinad Logistics (P.) Ltd. (2018) 95 taxmann.com 250 (SC) : 2018 TaxPub(DT) 4126 (SC).

FAVOUR : In assessee's favour

A.Y. : 2012-13


INCOME TAX ACT, 1961

Section 37(1)

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