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Income Tax - The time for completion of Income Tax assessments for A.Y 2016-17 is coming and Sec- 14A is one of the reason of scrutiny assessment of assesse, therefore here I am discussing some topics relating to sec – 14A read with rule 8D to resolve issues....
Read MoreIncome Tax - Minimum Alternate Tax, though on the statute since practically 3 decades now, has always been a subject matter of controversy. Even after all the amendments to it over the years, most recently to align it with the Ind-AS provisions, there is still room for filling in certain gaps. This article seeks to raise certain concerns, which, hopef...
Read MoreIncome Tax - Ever since the advent of section 14A in the statute, it has evoked squall of controversy. While the purpose of the section was to compute taxable income by whisking away the expenses attributable to exempt income, the tax department always tried to use it for fetching some more fortunes. In this article attempt has been made to look into ...
Read MoreIncome Tax - CA Ram Bajaj Introduction 1. Section 14A was first inserted by the Finance Act, 2001. However, same was inserted with retrospective effect from 1-4-1962. The inserted section reads as under:— ’14A. Expenditure incurred in relation to income not includible in total income.—For the purposes of computing the total income under th...
Read MoreIncome Tax - Section 14A was enacted vide Finance Act, 2001 w.r.e.f. 1-4-1962, so that net taxable income is actually taxed and no deduction is allowed against taxable income for expenditure incurred in earning exempt income. It was enacted to overcome the Supreme Court decision in the case of Rajasthan State Warehousing Corporation v. CIT [2000] 242 ...
Read MoreIncome Tax - The mechanical disallowance u/s 14A r.w. Rule 8D is also being added to the book profit by the AO irrespective of the fact whether assessee has actually debited any such expenditure in its P&L Account which is against the pronouncements given by various Judicial authorities in the recent past....
Read MoreIncome Tax - As earlier intimated to you, Writ Petition bearing No. 50 of 2010 (Indian Exporters Grievances Forum & Other vs. CIT) challenging the constitutional validity of Rule 8D has been admitted on 12.1.2010 by Hon’ble Shri Justice Dr. D.Y. Chandrachud and Hon’ble Shri Justice J.P. Devadhar of the Bombay High Court. ...
Read MoreCIT Vs Alpha G. Corp Development Ltd. (Delhi high Court) - CIT Vs Alpha G. Corp Development Ltd. (Delhi high Court) High Court held that strategic investments have to be considered for disallowance under Section 14A but assessee is entitled to contend that the investments are legacy Investments or one-time investment and that there is in fact no expenditure...
Read MoreNice Bombay Transport (P) Ltd Vs ACIT (ITAT Delhi) - HC arrived at a correct conclusion by setting aside the disallowance under section 14 A of the Act in respect of the dividend earned on the shares held as stock in trade, because such shares were held during the business activity of the assessee and it is only by a quirk of fate that when the invest...
Read MoreM/s ASK Partners Vs ACIT (ITAT Jaipur) - M/s. ASK Partners Vs ACIT (ITAT Jaipur) The interest paid by the firm and claimed as deduction is simultaneously susceptible to tax in the hands of its respective partners in the same manner. In the same vain, the firm is merely a compendium of its partners and its partners do not have separate leg...
Read MorePCIT Vs M/s Oil Industry Development Board (Supreme Court) - PCIT Tax Vs M/s. Oil Industry Development Board (Supreme Court) Hon’ble supreme court held that in the absence of any exempt income, disallowance under Section 14-A of the Act of any amount was not permissible. FULL TEXT OF THE SUPREME COURT JUDGEMENT Delay condoned. In view of the decision o...
Read MorePCIT Vs IL&FS Energy Development Company Ltd. (Delhi High Court) - No disallowance of expenditure in terms of section 14A read with rule 8D can be made in case where no exempt income is earned in the relevant assessment year....
Read MoreCircular No. 5/2014-Income Tax - (11/02/2014) - Circular No. 5/2014-Income Tax Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby clarifies that Rule 8D read with section 14A of the Act provides for disallowance of the expenditure even where taxpayer in a particular year has not earned any exempt income....
Read MoreNotification No. 45/2008-Income Tax - (24/03/2008) - INCOME TAX NOTIFICATION NO-45/2008, DT: March 24, 2008 Method for determining amount of expenditure in relation to income not includible in total income. 8D(1) Where the Assessing Officer, having regard to the accounts of the assessee of a previous year, is not satisfied with-(a) the correctness of ...
Read MoreCIT Vs Alpha G. Corp Development Ltd. (Delhi high Court) -
Nice Bombay Transport (P) Ltd Vs ACIT (ITAT Delhi) -
M/s ASK Partners Vs ACIT (ITAT Jaipur) -
PCIT Vs M/s Oil Industry Development Board (Supreme Court) -
PCIT Vs IL&FS Energy Development Company Ltd. (Delhi High Court) -
Wodehouse Gymkhana Ltd. Vs Income Tax Office (ITAT Mumbai) -
Nine Dot Nine Mediaworx (P) Ltd. Vs ITO (ITAT Delhi) -
Essel Mining & Industries Ltd. Vs DCIT (ITAT Kolkata) -
DCIT Vs Universal Industrial Fund Ltd. (ITAT Kolkata) -
Outsource Partners International (P.) Ltd. Vs DCIT (ITAT Bangalore) -
