Section 14A - Page 5

Dividend Stripping Transactions – Income tax provisions

Dividend stripping refers to transacting in shares or securities linked to shares of a company on which dividend is payable. Typically, a dividend stripping transaction can be explained with an illustration....

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Section 14A will not apply if no exempt income

McDonald's India Pvt. Ltd. Vs Addl. CIT (ITAT Delhi)

McDonald's India case: Section 14A of the Income-tax Act, 1961 will not apply if no exempt income has been received or receivable during the previous year in question...

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Section 14A can be put in motion only when there is exempt income

M/s Adhunik Metaliks Ltd. Vs ACIT (ITAT Kolkata)

This appeal by the revenue arises out of the order of the Learned Commissioner of Income Tax(Appeals)-20, Kolkata [in short the ld CIT(A)] in Appeal No.1044/CIT(A)-20/CC-1(1)/15-16 dated 25.07.2016 against the order passed by the ACIT, CC-1(1), Kolkata...

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Advertisement expenditure should primarily be treated as revenue expenditure

DCIT Vs Paramount Surgimed Ltd. (ITAT Delhi)

Where assessee did not have any exempt income during the year and investments being held by it were in the nature of Strategic Investments, no disallowance under section 14A could be made....

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Amount paid as R&D Cess to Government is allowable as deduction irrespective of ALP

McDonald’s India Pvt. Ltd. Vs DCIT (ITAT Delhi)

otwithstanding the fact that the TPO determined nil ALP of royalty payment and franchisee fee, the amount paid as R&D Cess on these payments has to be allowed as deduction since it is a statutory payment to the Government....

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In absence of exempt income no disallowance under section 14A

ITO Vs Moonrock Hospitality (P) Ltd. (ITAT Delhi)

Since the assessee’s profit and loss account showed only one item of expenditure which had been booked in the accounts and there was no exempt income earned by the assessee, the question of disallowance under section 14A did not arise....

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Disallowance U/s. 14A not applicable on investment on which dividend received is chargeable to tax but allowed Rebate under DTAA

ACIT Vs M/s. Indian Farmers Fertiliser Cooperative Ltd (ITAT Delhi)

Investments on whom dividend received, though chargeable to tax but allowed as rebate in view of DTAA agreement cannot be included for the purpose of computing disallowance u/s 14A of Income Tax Act....

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No disallowance under rule 8D(2)(ii) r.w. sec. 14A in absence of diversion of interest bearing funds

DCIT Vs SIL Investment Ltd. & Vice-Versa (ITAT Delhi)

In the present case As assessee had established nexus of interest expenses with its main activity of financing and there was not a single amount of interest bearing borrowings which could be related with investment which yielded tax-free dividend income, no disallowance under rule 8D(2)(ii) was called for. AO was directed to compute disal...

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Reopening for non-disclosure of S. 14A disallowance calculation method is invalid

The Nainital Bank Ltd. Vs Asstt. (ITAT Delhi)

The Nainital Bank Ltd.  Vs Asstt. (ITAT Delhi) When the assessee furnished all the facts and figures including the earning of the tax free income and the expenditure which was accepted by the learned AO, it is not open for the AO to say that the income escaped assessment because assessee did not reveal the […]...

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Expenditure incurred to earn exempt Income computed u/s 14A can’t be added while computing Book Profit: ITAT

A.C.I.T. Vs M/s. Ridhi Portfolion (p) Ltd (ITAT Kolkata)

These four appeals are preferred by the revenue against the four separate orders passed by the Ld. CIT (Appeals) all dated 27th July, 2016 for A.Y. 2010-11, 2011-12, 2012-13 and 2013-14 and since a common issue involved therein, the same have been heard together and are being disposed of by a single consolidated order....

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