Income Tax - Clarification in respect of disallowance under section 14A in absence of any exempt income during an assessment year Section 14A of the Act provides that no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income that does not form part of the total income as per the provisions […]...
Read MoreIncome Tax - The issue before the Hon’ble Supreme Court (SC) was whether section 14A of the Income-tax Act, 1961 (the Act) enables the Department to make disallowance on expenditure incurred for earning tax-free income, where the assessee does not maintain separate accounts for the investments and other expenditure incurred for earning the tax-free ...
Read MoreIncome Tax - The ever debatable ‘Disallowance under section 14A’ (read with Rule 8D (2) now has again found a different horizon wherein the disallowance is not attracted (partially). The below mentioned case depicts a situation where interest free funds obtained by the assessee, a real estate developer, far exceeds the investments made by ...
Read MoreIncome Tax - No applicability of section 14A on exemption of Rs.1,00,000/- (One Lakh) Long Term Capital Gain (LTCG) under Section 112A of Income Tax Act, 1961. Section 14A shall not be applicable on LTCG income earned u/s 112A. The answer to the questions of applicability of section 14A for LTCG u/s 112A, as income covered under section […]...
Read MoreIncome Tax - Section 14A of the Income Tax Act, 1961 (‘the Act’) provides that no deduction shall be allowed of any expenditure incurred in relation to income not includible in total income i.e. expenditure related to exempt income is not tax deductible....
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 MorePCIT Vs Era Infrastructure (India) Ltd. (Delhi High Court) - Delhi high court negating dept stand about retrospective amendment plea for sec 14A explanation added by finance act 2022 in authors opinion it should ably address the much created confusion from revenue side....
Read MoreACIT Vs Assam Bengal Carriers (ITAT Kolkata) - When strategic investment made in shares generates dividend income which is not taxable, section 14A becomes applicable...
Read MoreDCIT Vs Jammu Pigments Ltd. (ITAT Delhi) - DCIT Vs Jammu Pigments Ltd. (ITAT Delhi) Assessing Officer initiated proceeding under section 154 of the Act to make the disputed disallowance while computing the book profit and ultimately did so. Therefore, it is evident, the 154 proceeding was at the behest of the Revenue audit. Applicability of ...
Read MorePoonawalla Finance Pvt. Ltd. Vs DCIT (ITAT Pune) - Poonawalla Finance Pvt. Ltd. Vs DCIT (ITAT Pune) The only issue pressed is about restricting the addition under Rule 8D of the Income-tax Rules, 1962 by considering only such investments which yielded tax free dividend income. Hon’ble Delhi High Court in ACB India Ltd. vs. CIT (2015) 374 ITR 1...
Read MoreKarnataka State Industrial And Infrastructure Development Corporation Ltd. Vs DCIT (Karnataka High Court) - Karnataka State Industrial And Infrastructure Development Corporation Ltd. Vs DCIT (Karnataka High Court) This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) has been preferred by the assessee. The subject matter of the appeal per...
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 MorePCIT Vs Era Infrastructure (India) Ltd. (Delhi High Court) -
ACIT Vs Assam Bengal Carriers (ITAT Kolkata) -
DCIT Vs Jammu Pigments Ltd. (ITAT Delhi) -
Poonawalla Finance Pvt. Ltd. Vs DCIT (ITAT Pune) -
Karnataka State Industrial And Infrastructure Development Corporation Ltd. Vs DCIT (Karnataka High Court) -
Namdhari Seeds Pvt. Ltd. Vs DCIT (ITAT Bangalore) -
J. K. Fenner (India) Limited Vs JCIT (ITAT Chennai) -
Zuari Investments Ltd. Vs ITO (ITAT Delhi) -
DCIT Vs Kesoram Industries Ltd. (ITAT Kolkata) -