Case Law Details
So far as the dis allowance of administrative expenditure is concerned, we feel considering the fact that there is no precise formula for proportionate dis allowance, no dis allowance is called for, for proportionate administrative cost attributable to earning of tax free income until Rule 8D came into force. We, therefore, dispose of the appeals by setting aside the orders of the Tribunal and that of the first appellate authority on this issue and remand all the assessments back to the Assessing Officer for reworking dis allowance under Section 14A in the case of each assessee for each assessment year.
The proportionate dis allowance under Section 14A should be limited to only interest liability and not overheads or administrative expenditure; which should be considered for dis allowance under Rule 8D from 2007-2008 on wards.
The Commissioner Of Income Tax (CIT), Trichur Vs The Catholic Syrian Bank Ltd., Trichur
I.T. Appeal Nos. 467, 720, 730, 843, 479, 1324 & 1045 of 2009 & 40 of 2010
JUDGMENT
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