Section 14A - Page 20

No tax-free income – No Disallowance U/s. 14A r.w. Rule 8D – HC

Commissioner Of Income Tax Vs M/S. Shivam Motors (P) Ltd. (Allahabad High Court)

Section 14A of the Act provides that for the purposes of computing the total income under the Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act....

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No disallowance U/s. 14A for investment in shares of subsidiaries & Joint Ventures

JM Financial Limited Vs ACIT (ITAT Mumbai)

For the year under consideration the assessee has specifically raised a point before the AO that 97.82% of the investment is in the subsidiary companies and joint venture companies and, therefore, no expenditure was incurred for maintaining the portfolio on these investments...

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Instruction No. 3 of 2011 dated 9.2.2011 issued by CBDT has prospective effect

CIT Vs Shambhubhai Mahadev Ahir (Gujarat High Court)

Clause 11 of Instruction No. 3/2011 dated 9.2.2011 specifically states that “this instruction will apply to appeals filed on or after 9.02.2011. However, the cases where appeals have been filed before 9.02.2011 will be governed by the instructions on this subject...

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Sec 14A Expenditure incurred in relation to income not included in total income rw Rule 8D

45/2008 (24/03/2008)

Section 14A was introduced by the Finance Act, 2001 w.e.f. 1st April 1962 and will, accordingly apply to the assessment year 1962-63 and subsequent years. Till the assessment year 2008-09, there was no standard rule prescribed by the department. Therefore, assessing officers were applying various methods to disallow the expenditure under...

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No Proportionate disallowance of Interest u/s 14A if investments in shares been made from interest free funds

DCIT Vs Nandan Exim Ltd (ITAT Ahmedabad)

We find that CIT(A) while deleting the addition has noted that the Assessee was having sufficient interest free funds and therefore there was no justification for presuming that any part of interest bearing loan has been utilized for the purpose of making investments. ...

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No disallowance u/s 14A r.w. Rule 8D if interest income exceeds interest expenditure

Safal Reality P. Ltd.  Vs ACIT  (ITAT Ahmedabad)

The assessee company is a builder and developer of residential and commercial projects. It was noted by the AO that the assessee company is a partner in several “partnership firms”. The AO had made a list of all those firms along with profit sharing ratio of the assessee in those firms....

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CBDT Circular No. 5/2014 Dated: 11.02.2014

Circular 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....

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S. 14A Recording of satisfaction is pre-requisite for invoking rule 8D

Kalyani Steels Ltd. Vs Addl. Commissioner of Income Tax (ITAT Pune)

In this case, assessee has earned by way of dividends a sum of Rs.5,45,58,685/-, which is exempt u/s 10(38) of the Act and thus the same does not form part of the total income under the Act. In the computation of income, assessee having regard to section 14A of the Act...

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Disallowance U/s. 14A is to Be Made For Computing Book Profits U/s. 115JB

CIT Vs Goetze (India) Ltd (Delhi High Court)

These appeals by the Revenue relates to Assessment Year 2001-02. The respondent-assessee, as noticed above, namely, Federal-Mogul Goetze (India) Limited, had filed return of income on 31st October, 2001 declaring „nil‟income after setting for brought forward losses and depreciation. ...

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No S. 14A Disallowance without recording dissatisfaction over expense claimed by the Assessee

Commissioner of Income Tax, Central II Vs M/S. R.E.J. Agro Ltd. (Calcutta High Court)

The Assessing Officer also disallowed the expenditure under section 14A of the Income Tax Act, 1961 without first recording that he was not satisfied with the correctness of the claim as regards the claim that “no expenditure” was made by the assessee....

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July 2020