The Hon’ble High Court in the case of Cheminvest Limited , has held that if no dividend income is earned during the year, no disallowances u/s 14A of the Act is warranted All ITAT ACIT Vs Prabhatam Advertising (P) Ltd. ITA No. 1439/Del/2015 Date of Judgement: 12/06/2018 Related Assessment Year : 2011-12 This appeal by… Read More »
HIGH COURT OF MADRAS Commisioner of Income-tax, Central 1, Chennai v. Chettinad Logistics (P.) Ltd. RAJIV SHAKDHER AND R. SURESH KUMAR, JJ. T.C.A. NO. 24 OF 2017 MARCH 13, 2017 T.R. Senthil Kumar for the Appellant. S. Sridhar for the Respondent. JUDGMENT Rajiv Shakdher, J. – This is an appeal filed under Section 260 A… Read More »
Held The burden is upon the assessee to show and prove that interest free fund far exceeds the value of investment and thereafter, to justify the quantification of amount of Rs. 4 lakhs towards disallowance for the exempted income. In the present case, the said burden has not been discharged satisfactorily and thereafter, the assessing… Read More »
Held we hold that by virtue of lease only an interest in land is created which does not qualify for allowance e of depreciation. IN THE ITAT BANGALORE BENCH ‘C’ Cyber Park Development & Construction Ltd. v. Deputy Commissioner of Income-tax, Circle 11(2), Bangalore SUNIL KUMAR YADAV, JUDICIAL MEMBER AND INTURI RAMA RAO, ACCOUNTANT MEMBER… Read More »
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES NOTIFICATION New Delhi, the 02nd June, 2016 S.O. 1949(E)- In exercise of the powers conferred by section 295 read with subsection (2) of section 14A of… Read More »
Whether provision of section 14A is applicable even in respect of income which has been claimed as a deduction under Chapter VIA and more specifically under Section 80P(2)(d) of the Income Tax Act, 1961 Held Yes In Section 14A, the first phrase is “for the purposes of computing the total income under this Chapter” which… Read More »
Held As regards the interest referred to in the second limb of Rule 8D of the Rules, the assessee contends that the amounts of investment in such securities in the period under consideration is much less than the amount of capital and surplus funds available with the Company and no portion of the borrowed funds… Read More »
Section 14A / Rule 8D cannot be automatically invoked. It cannot be invoked if the AO does not record satisfaction as to why the assessee’s voluntary disallowance is not proper The Court disapproves of the AO invoking Section 14A read with Rule 8D(2) of the Rules without recording his satisfaction. The recording of satisfaction as… Read More »
Where assessee had not shown any income under head ‘exempt income’ for which it claimed expenditure, disallowance under section 14A was not justified IN THE ITAT MUMBAI BENCH ‘E’ SM Energy Teknik and Electronics Ltd. v. Deputy Commissioner of Income-tax JOGINDER SINGH, JUDICIAL MEMBER AND RAJENDRA, ACCOUNTANT MEMBER IT APPEAL NOS. 1859 & 1495 (MUM.)… Read More »
Whether Proportionate interest is disallowable under Section 14A even if bank’s current deposits exceed tax-free investment ? Interest liable to be disallowed u/s 14A on proportionate basis even if assessee-bank’s current deposits exceed its investments yielding tax-free returns. Assessee-bank cannot escape disallowance of interest u/s 14A by taking the plea that its interest-free funds (own… Read More »