Case Law Details
Pr. CIT Vs. Reliance Capital Asset Management Ltd. (Bombay High Court)
The assessing officer did not specifically record that he is not satisfied with the correctness of the claim of the assessee in respect of the expenditure in relation to the income which does not form part of the total income under the Act. However, he felt obliged and going by the presence of rule 8D that once section 14A is attracted, the dis allowance is to be made as per rule 8D only which has been prescribed by the Legislature. The assessing officer has not adverted to the plain language of sub-section (2) of section 14A. As, assessing officer had not commented upon correctness or otherwise of assessee’s working of expenditure, formula prescribed in rule 8D(2)(iii) could not have been applied to work out dis allowance under section 14A.
FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:-
By this appeal, the Revenue questions the order passed by the Income Tax Appellate Tribunal, Bench at Mumbai, dated 17102014.
2. The Bench had before it two appeals of the assessee for the assessment years 200708 and 2008-09 being Income Tax Appeal Nos. 8625 of 2010 and 4459 of 2012.
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