TaxGuru Newsletter Subscription
Information You Can Rely On.
Income 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 - Whether disallowance under section 14A of the income tax act, 1961 is related with earning of actual income or notional/anticipated income? Most of taxpayers under Income tax act, 1961 afraid to file appeal against additions made by assessing officers due to fear of departmental procedures/penalty/bar/attachment in the thought process o...
Read MoreIncome Tax - Section 14A of Income Tax Act, 1961 r.w. Rule 8D of Income Tax Rules: Supreme Court standpoint – No tax in the absence of any exempt income The much debated and extensively litigated issue has been resolved by the Supreme Court in 2018 & 2019. The article below summarises issues encountered by the assessee’s prior […]...
Read MoreIncome Tax - The very intent of the section 14A of the income tax Act is that no expenditure shall be allowed as deduction, in computing the Total income of the Assessee, if such expenditure is incurred to earn an income, which is exempt under Income tax act. That is to say that no deduction shall be allowed in respect of the expenditure incurred in r...
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 MoreHindustan Aeronautics Limited Vs ACIT (Karnataka High Court) - Hindustan Aeronautics Limited Vs ACIT (Karnataka High Court) The fact that a certain payment constitutes income or capital receipt in the hands of the recipient is not material in determining whether the payment is revenue or capital disbursement qua the payer. It has further been held that whether ...
Read MoreDCIT Vs DLF Universal Ltd. (ITAT Delhi) - Disallowance u/s 14A got restricted to the extent of exempt income, even if the provisions of the section 14A were attracted....
Read MoreAmbuja Housing & Urban Infrastructure Co. Ltd Vs DCIT (ITAT Kolkata) - Ambuja Housing & Urban Infrastructure Co. Ltd Vs DCIT (ITAT Kolkata) It appears that while invoking Rule 8D of the I.T Rules, 1962 the AO has not pointed out/identified any specific infirmity in the disallowance so offered by the appellant/ assessee. A single sentence ‘explanation of the a...
Read MoreSantosh Mohanlal Rathi Vs DCIT (ITAT Pune) - Santosh Mohanlal Rathi Vs DCIT (ITAT Pune) ITAT followed Hon’ble Bombay High Court decision in the case of M/s. Nirved Traders Pvt. Ltd., Vs. DCIT (ITA No.149/2017 dated 23.04.2019) wherein the Jurisdictional High Court held that the disallowance under Section 14A of the Act read with Rule 8D(2) o...
Read MoreRamalinga Mills Ltd. Vs ACIT (ITAT Chennai) - Ramalinga Mills Ltd. Vs ACIT (ITAT Chennai) The issue under consideration is whether disallowance of expenditure in relation to exempt income u/s.14A read with Rule 8D of I.T. Rules, 1962 is justified in law? ITAT states that, the facts borne out from records clearly indicate that the assessee has e...
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 MoreHindustan Aeronautics Limited Vs ACIT (Karnataka High Court) -
DCIT Vs DLF Universal Ltd. (ITAT Delhi) -
Ambuja Housing & Urban Infrastructure Co. Ltd Vs DCIT (ITAT Kolkata) -
Santosh Mohanlal Rathi Vs DCIT (ITAT Pune) -
Ramalinga Mills Ltd. Vs ACIT (ITAT Chennai) -
CIT Vs Sociedade De Fomento Industrial Pvt. Ltd (Bombay High Court at Goa) -
Brindavan Beverages Pvt.Ltd. Vs DCIT (ITAT Banglore) -
Standard Chartered Grindlays Bank-Tax Department Vs ACIT (ITAT Delhi) -
ACIT Vs Him Urja Pvt. Ltd. (ITAT Delhi) -
