Case Law Details
Case Name : UTI Bank Ltd. Vs ACIT (ITAT Ahmedabad)
Related Assessment Year : 2002-03, 04-05 & 2005-06
Courts :
All ITAT ITAT Ahmedabad
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Brief of the Case
ITAT Ahmedabad held In the case of UTI Bank Ltd. vs. ACIT that we find that the assessee’s interest free deposits exceed its tax free investment in current year as well as in succeeding assessment year 2003-04. The tribunal and hon’ble jurisdictional high court deleted an identical section 14A disallowance based on the very presumption. The Revenue’s Special Leave Petition stand admitted qua administrative expenses only. The only distinction that is to be seen in these two assessment years is that the assessee has suo moto disallowed Rs. 6.23 crores in the impugned asse...
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With due regards to apex court judgment on the IInd part i.e. “Other operating expenses are concerned, appellant has not filed any details as to how much expenditure is to be apportioned for earning the exempt income. The total operating expenses are Rs. 205.47 Cr. and the exempt income claimed by the appellant is Rs. 39.65 Cr. whereas the total income earned by appellant is Rs. 1595.40 Cr. Hence the exempted income is 2.485% of the total income. Therefore, by allocating the operating expenses of Rs. 205.47 Cr. in this ratio, the expense allocable to the exempt income comes to Rs. 5.11 Cr. (205.47 x 2.485%) Therefore, this expenditure has to be disallowed out of the total expenditure for earning the exempt income under the provisions of Sec. 14 A.” The detail must be part of averments of petition. It could give better revenue to GOVT.