Sponsored
    Follow Us:

Case Law Details

Case Name : ATC Global Logistics Pvt. Ltd. Vs ACIT (ITAT Mumbai)
Appeal Number : I.T.A. No. 2595/Mum/2023
Date of Judgement/Order : 19/12/2023
Related Assessment Year : 2016-17
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

ATC Global Logistics Pvt. Ltd. Vs ACIT (ITAT Mumbai)

In a pivotal ruling, the Income Tax Appellate Tribunal (ITAT) Mumbai bench delivered a judgment concerning ATC Global Logistics Pvt. Ltd. Vs Assistant Commissioner of Income Tax (ACIT) for the Assessment Year 2016-17. The case revolved around two principal issues: the disallowance made under Section 14A of the Income Tax Act in relation to Rule 8D and the addition of depreciation to the book profit under Section 115JB.

Disallowance under Section 14A

ATC Global Logistics Pvt. Ltd., engaged as an International Freight Forwarder, contested the addition of Rs. 6,21,921 as disallowance under Section 14A read with Rule 8D(2)(iii) of the Income Tax Act. The disallowance was attributed to the exempt income earned by the assessee, arguing that investments were made from its own funds and no direct expenses were incurred to earn such income. Despite the company’s assertions and the submission that no separate set of books were maintained for these transactions, the assessing officer applied Rule 8D(2)(iii) towards indirect expenses, resulting in the disallowance.

Book Profits and Section 115JB

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031