|
The Tax Publishers2021 TaxPub(DT) 0032 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A
It had clearly stated that the time devoted by the investment committee and the employees as well as other overheads certainly involve a cost which is attributable to earning of exempt income by assessee. Therefore, it would not be a case where AO had failed to record any satisfaction and mechanically proceeded to compute the disallowance under section 14A read with rule 8D.
|
Disallowance under section 14A - Expenditure against exempt income - Satisfaction duly recorded by AO -
Assessee was in appeal against disallowance made by AO under section 14A read with rule 8D and also against rejecting suo motu disallowance made by it on the ground that AO had not recorded satisfaction as per section 14A(2) while disallowing expenditure attributable to exempt income. Held: On a perusal of the reasoning, it was noticed that the AO had not rejected the claim of the assessee merely on the reasoning that the assessee does not maintain its account in a manner from which expenditure attributable to earning exempt income can be easily identified. AO had clearly stated that the time devoted by the investment committee and the employees as well as other overheads certainly involve a cost which is attributable to earning of exempt income. Therefore, it was not a case where AO had failed to record any satisfaction and mechanically proceeded to compute the disallowance under section 14A read with rule 8D.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
SUBSCRIBE FOR FULL CONTENT |