Disallowance under Section 14A of Income TAx Act, 1961
Income Tax : The issue was whether exempt dividend income could be taxed by overriding Rule 8D. The ITAT held that additions beyond the Section...
Income Tax : The Tribunal clarified that disallowance under Section 14A is not warranted when sufficient interest-free own funds are available,...
Income Tax : The ruling confirms that notional disallowances under Section 14A cannot be added while computing book profits under the MAT regim...
Income Tax : Section 14A disallows expenses related to tax-exempt income. Rule 8D provides the formula, ensuring only taxable-income-related ex...
Income Tax : Tribunal confirms that detailed AO dissatisfaction justifies invoking Rule 8D, ensuring proper disallowance of expenses related to...
Income Tax : Bombay Chartered Accountants' Society has made a Representation on 'Suggestions for Amendments in the Income Tax Act', on 24th May...
Income 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 whethe...
Income Tax : 1. IMPLEMENTATION OF IND-AS AND THEIR IMPACT ON TAXABLE INCOME IND-AS (Indian version of IFRS) accounting standards are being impl...
Income Tax : Amendments to Section 14A to provide that (i) dividend received after suffering dividend-distribution tax and share income from fi...
Income Tax : As earlier intimated to you, Writ Petition bearing No. 50 of 2010 (Indian Exporters Grievances Forum & Other vs. CIT) challenging ...
Income Tax : Court held that penalty under Section 270A cannot apply where assessed income does not exceed processed income. Key takeaway: stat...
Income Tax : The case examined whether interest earned from co-operative banks qualifies for deduction under Section 80P(2)(d). The Tribunal he...
Income Tax : Consistency over technicalities: ITAT Mumbai allowed actuarial pension provision as an ascertained liability, rejected mechanical ...
Income Tax : A taxpayer could submit a revised return u/s 139(5) only when it discovered a bona fide omission or incorrect statement in the ori...
Income Tax : The Tribunal set aside additions to book profit after ruling that MAT provisions do not apply to banks established under a special...
Income Tax : 2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts,...
Income Tax : Circular No. 5/2014-Income Tax Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby clari...
Income Tax : INCOME TAX NOTIFICATION NO-45/2008, DT: March 24, 2008 Method for determining amount of expenditure in relation to income not incl...
Income Tax : The provisions of Sections 144-A and 144-B of the Income-tax Act have come into force with effect from 1st January 1976. Instructi...
The Tribunal directed the AO to treat the sales tax subsidy as a capital receipt, finding its purpose was to promote industrialization in backward regions, not subsidize production. The ITAT also deleted the Section 14A disallowance, confirming the taxpayer had sufficient own funds.
The ITAT confirmed the deletion of a Rs.1.84 crore addition on demonetisation cash deposits, ruling they were genuine sales proceeds. The Tribunal held that since the audited books were accepted and the cash increase was explained by business changes, the addition based on mere suspicion was invalid and caused double taxation.
ITAT Delhi held that when an assessee’s own funds far exceed interest-free advances, no disallowance under Section 36(1)(iii) can be made. Interest addition of ₹5.62 crore was deleted, and 14A disallowance was limited to dividend-yielding investments.
The Tribunal confirmed that no disallowance under Section 14A can be made when the assessee earned no exempt income during the year. Following Calcutta High Court precedents, the ITAT rejected the Revenue’s attempt to apply the prospective Finance Act 2022 amendment to the relevant assessment year (AY 2014-15).
The ITAT ruled that the Assessing Officer’s mechanical application of Rule 8D for Section 14A disallowance was invalid without recording proper satisfaction. The Tribunal directed that only net interest (interest paid less interest earned) and only those investments that yielded exempt income should be considered for re-computation, upholding the assessee’s legal objections.
Shringar Developers wins ITAT appeal. Tribunal rules that higher taxable interest than expense negates Section 14A disallowance. Interest on capital contribution to firm held for commercial expediency under Section 36(1)(iii).
Provision for customer loyalty points, computed on a scientific and consistent basis, constituted a present and ascertained liability deductible under Section 37(1). Disallowance u/s 14A was deleted since no exempt income was earned during the year.
ITAT Mumbai held that the interconnect usage charges and roaming charges paid to Foreign Telecom Operators [FTOs] are not in the nature of royalty and hence not taxable in India. Thus, disallowance u/s. 40(a)(i) for non-deduction of TDS not justified. Accordingly, appeal allowed to that extent.
The ITAT Pune dismissed the Revenue’s appeal, ruling against additions for ICDS adjustments, provision reversals (including liquidated damages and project costs), and Section 40(a)(ia) disallowance. The Tribunal held that subsequent reversal of provisions cannot be taxed again if the original provision was disallowed in earlier years, thereby preventing double taxation and upholding consistent accounting treatment.
ITAT Kolkata held that penalty paid to private entities/ third parties towards breach of contract is the usual course of business and doesn’t involve payment of penalty for infraction of any law hence disallowance made under Explanation to Section 37(1) of the Income Tax Act is unwarranted.
