Section 14A - Page 5

No disallowance U/s. 14A if Satisfaction as to incurring of expense against exempt income not recorded

JCIT Vs M/s IMC Ltd (ITAT Kolkata)

Where AO had directly made the disallowance under section 14A by abruptly rejecting workings of assessee without having any cogent reason to deny the claim made by the assessee no expenditure was incurred for earning exempt income, the disallowance was deleted....

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No TDS required to be deducted U/s 194H on bank guarantee commission

DCIT Vs PRL Projects & Infrastructure Lt. (ITAT Delhi)

ITAT had held that there is no principal-agent relationship between the bank issuing the bank guaranee of the assessee. The ITAT Mumbai Bench had further noted that while it is termed as |guarantee commission|, the same is not in the nature of commission...

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No disallowance U/s. 14A in absence of actual receipt of income which is not includible in total income

Pr. CIT, Nagpur. Vs Ballarpur Industries Limited (Bombay High Court- Nagpur Bench)

The expression does not form part of the total income in Section 14A envisages that there should be an actual receipt of the income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the income in question...

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All about Disallowance under Section 14A with Judicial Pronouncements

1 Legislative History 1.1 Section 14A was first inserted by the Finance Act, 2001. However, same was inserted with retrospective effect from 1-4-1962. The inserted section reads as under:- ‘14A. Expenditure incurred in relation to income not includible in total income. – For the purposes of computing the total income under this Chapte...

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Posted Under: Income Tax |

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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Posted Under: Income Tax |

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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