Section 14A judiciary-2

No section 14A disallowance if there is no exempt income in that year

DCIT Vs JSW Limited (ITAT Mumbai)

DCIT Vs JSW Limited (ITAT Mumbai) The issue under consideration is whether A.O. is correct in restricting the disallowance under section 14A of the Income Tax Act, 1961, without appreciating the fact that the appellant company has not earned any tax-exempt income during the relevant assessment year? As per Section 14A of the Act, the [&he...

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Section 14A Disallowance cannot be made if no expenditure was incurred to earn exempt income

CIT Vs Syndicate Bank (Karnataka High Court)

No deduction shall be allowed in respect of the expenditure incurred by the assessee in relation of the income which does not form part of his total income under the Act.  As assessee had not incurred any expenditure in relation to dividend income, therefore, no dis allowance could be made under section 14A....

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Section 14A / Rule 8D(2) cannot be invoked for making disallowance u/s 115JB

Sri Vishnu Shankar Mill Vs ITO (ITAT Chennai)

 Sri Vishnu Shankar Mill Vs ITO (ITAT Chennai) Section 14A read with Rule 8D(2) of the 1962 Rules cannot be invoked for making disallowance u/s 115JB of the 1961 Act but disallowance of expenses incurred relatable to earning of an exempt income is to be computed in accordance with Explanation 1(f) to Section 115JB of […]...

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AO cannot reject Section 14A disallowance made by assessee without recording his satisfaction

ACIT Vs Indiabulls Real Estate Ltd. (ITAT Delhi)

AO cannot reject suo-moto disallowance made by assessee under Section 14A of the Income Tax Act, 1961 without recording his satisfaction as required under Section 14A(2) of the Income Tax Act, 1961....

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Section 14A disallowance not warranted in absence of tax-free income

PCIT Vs Greenland Infracon P. Ltd. (Gujarat High Court)

PCIT Vs Greenland Infracon P. Ltd. (Gujarat High Court) Section 14A of the Act can be invoked only if the assessee seeks to square off the expenditure against the income which does not form part of the total income under the Act, and in such circumstances, Section 14A of the Act could not have been […]...

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No Section 14A disallowance if Assessee not used borrowed fund to make investment

Motilal Chunilal & Muktalal Shaw (HUF) & Ors. Vs Asstt. CIT (ITAT Kolkata)

The question raised in appeal is challenging the action of CIT(A) in confirming the addition made on account of Section 14(A) r.w.s. 8D(2)(ii)&(iii) of the Rules....

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Shares held as stock-in-trade needs to be considered for Section 14A disallowance

Gajanan Enterprises Vs ACIT (ITAT Mumbai)

Where shares are held by an assessee as stock-in-trade, the earning of exempt dividend income on the same would trigger the applicability of Sec. 14A of the Act. Aoordingly shares which were held by the assessee as stock-in-trade were to be considered for the purpose of computing the disallowance under Sec. 14A of the Act....

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Lawyer fee on daily basis for business allowable as revenue expense

PCIT Vs Adani Properties Pvt. Ltd. (Gujarat High Court)

The Gujarat High Court has held that the lawyer fee/legal assistance expenditure taken by the assessee on day to day basis for the purpose of business can be treated as revenue expenditure and deductable from Taxable Income....

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Depreciation cannot be considered for computing section 14A disallowance

Sudha Apparels Ltd. Vs DCIT (ITAT Kolkata)

Depreciation claimed by assessee under section 32 cannot be considered for the purpose of computing disallowance under section 14A because section 14A deals only with the expenditure and not any statutory allowance, such as depreciation under section 32....

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Section 14A Disallowance cannot surpass quantum of exempt income

Shri Harish M. Kukreja Vs ITO (ITAT Ahmedabad)

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 […]...

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