| |
| The Tax Publishers2019 TaxPub(DT) 6167 (Hyd-Trib) INCOME TAX ACT, 1961
Section 14A
As the issue under consideration was materially identical in Transport Corporation of India Ltd. v. Asstt. CIT [ITA No. 117/Hyd/2016 vide Order, dated 21-9-2016] : 2016 TaxPub(DT) 4521 (Hyd-Trib) following the conclusions drawn therein, AO was directed to recalculate the disallowance as per rule 8D and calculate the disallowance of expenditure under rule 8D(2)(ii) and (iii) taking the average investment from which the exempt income was received.
|
Disallowance under section 14A - Expenditure incurred on exempted income - Compulation of disallowance -
AO observed that assessee had made investment and had not declared any income from the said investments. Further, AO noticed from the information furnished by assessee that it had incurred interest on term loans. AO referring to the provisions of section 14A read with rule 8D, inter alia observed that no evidence was required to be examined to see that expenditure was actually incurred in relation to income not includible in total income. He, therefore, made disallowance under section 14A. Held: As the issue under consideration is materially identical in Transport Corporation of India Ltd. v. Asstt. CIT [ITA No. 117/Hyd/2016 vide Order, dated 21-9-2016] : 2016 TaxPub(DT) 4521 (Hyd-Trib) following the conclusions drawn therein, AO was directed to recalculate the disallowance as per rule 8D and calculate the disallowance of expenditure under rule 8D(2)(ii) and (iii) taking the average investment from which the exempt income was received.
Followed:Transport Corporation of India Ltd. v. Asstt. CIT [ITA No. 117/Hyd/2016 vide Order, dated 21-9-2016] : 2016 TaxPub(DT) 4521 (Hyd-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, HYDERABAD BENCH
 SUBSCRIBE FOR FULL CONTENT
|