Case Law Details
Shri Harish M. Kukreja Vs ITO (ITAT Ahmedabad)
The solitary issue involved in the present appeal is towards extent of disallowance permissible under s.14A of the Act. We find merit in the plea raised on behalf of the assessee that the disallowance under s.14A of the Act cannot surpass the quantum of exempt income in view of the long line of judicial precedents prevailing in this regard including the decision referred and relied upon by the assessee in State Bank of Patiala (supra) against which the SLP of the Revenue stands dismissed by the Hon’ble supreme Court of India. Accordingly, we set aside the order of the CIT(A) in this regard and direct the AO to restrict the disallowance to the extent of the exempt income.
FULL TEXT OF THE ITAT JUDGEMENT
The captioned appeal has been filed at the instance of the Assessee against the order of the CIT(A)-III, Ahmedabad (‘CIT(A)’ in short), dated 28.06.2013 arising in the assessment order dated 03.12.2010 passed by the Assessing Officer (AO) under S. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2008-09.
2. The solitary issue in the captioned appeal agitated by the assessee is towards disallowance of interest amounting to Rs.11,47,958/- computed in terms of Rule 8D(2)(ii) under the umbrella of Section 14A of the Act confirmed in an ex parte order passed by the CIT(A).
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