Disallowance under Section 14A of Income TAx Act, 1961
Income Tax : The ITAT Bangalore held that no disallowance under section 14A read with Rule 8D can be made where the assessee did not earn exemp...
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 : 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 : The ITAT Pune upheld the deduction under Section 10AA after finding that the Assessing Officer had not established that the SEZ un...
Income Tax : The ITAT Mumbai held that Explanation 1 to Section 37(1) could not apply in the absence of any finding by the competent authority ...
Income Tax : The Tribunal held that Rule 11UA gives the assessee the exclusive option to choose the valuation method for unquoted shares. While...
Income Tax : The ITAT Mumbai held that ESOP discount is an allowable deduction under Section 37(1), observing that the pendency of an SLP again...
Income Tax : Expenditure of ₹4.49 crore incurred on maintenance dredging for removal of natural siltation and restoration of the existing ope...
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 ITAT Bangalore upheld deduction of ESOP expenditure under Section 37, holding that the liability arising from employee stock options is an ascertained business expense. The Tribunal followed the Karnataka High Court ruling in Biocon Ltd. despite pending appeals before the Supreme Court.
The Tribunal held that no interest disallowance under Rule 8D(2)(ii) could be made where the assessee’s interest-free funds substantially exceeded its investments. It reaffirmed that the Revenue must establish a direct nexus between borrowings and exempt-income investments.
The Mumbai ITAT held that no separate addition for alleged bogus purchases was warranted where contract receipts were accepted, substantial gross profit had already been disclosed, and there was no evidence of cash being returned to the assessee.
The Tribunal held that actual rent received under genuine, registered agreements cannot be replaced with hypothetical market rent without cogent evidence of manipulation or unaccounted consideration. Since the Revenue failed to establish suppression of rent, the ALV addition was deleted.
The Tribunal noted that donations to Swachh Bharat Kosh and Clean Ganga Fund made towards CSR obligations are specifically excluded under section 80G, while no similar embargo exists for other eligible institutions. Consequently, the assessee’s claim for deduction was allowed in full.
The ITAT Kolkata held that the Assessing Officer could not examine issues beyond the limited scrutiny mandate without following CBDT-prescribed procedures for conversion into complete scrutiny. As a result, the interest disallowance under Section 36(1)(iii) was deleted.
ITAT Delhi accepted the assessee’s contention that disallowance under Section 14A cannot exceed exempt income. The ruling restricted the addition to the exempt income of ₹2.63 lakh despite a higher Rule 8D computation.
The Kerala High Court upheld the ITAT’s decision that no disallowance under Section 14A can be made when the assessee has not earned any exempt income during the relevant year. The Revenue’s appeal was dismissed as no substantial question of law arose.
The ITAT Delhi held that an interest-bearing loan can still be taxed as deemed dividend where all statutory conditions under Section 2(22)(e) are satisfied. Repayment of the loan did not alter its tax treatment.
ITAT Mumbai held that disallowance under Section 14A must be computed only with reference to investments that actually yielded exempt income. The Tribunal also deleted interest disallowance after finding that the assessee’s interest-free funds exceeded its investments.
