Dy. CIT v. Maheshwari Plaza Resorts Ltd.

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The Tax PublishersITA No. 892/Hyd/2013 2015 TaxPub(DT) 1472 (Hyd-Trib) Dy. CIT v. Maheshwari Plaza Resorts Ltd. INCOME TAX ACT, 1961 --Disallowance under section 14A--Expenditure against exempt incomeWhether assessee earned any exempted income--*Held:* AO observed that assessee out of interest bearing funds had invested Rs. 4.00 crores towards share application money in its sister cocnern, therefore, he disallowed interest. Relying on Asstt. CIT v. Sun Investment (2011) 8 ITR 33 (Del-Trib), the matter was remanded back to AO to verify whether any exempted income had been earned by assessee during the relevant assessment year on the investment towards share application money and decide the issue in accordance with law after giving an opportunity of hearing to assessee. SUBSCRIBE FOR FULL CONTENT

The Tax PublishersITA No. 892/Hyd/2013
2015 TaxPub(DT) 1472 (Hyd-Trib)

Dy. CIT v. Maheshwari Plaza Resorts Ltd.

INCOME TAX ACT, 1961

--Disallowance under section 14A--Expenditure against exempt incomeWhether assessee earned any exempted income--Held: AO observed that assessee out of interest bearing funds had invested Rs. 4.00 crores towards share application money in its sister cocnern, therefore, he disallowed interest. Relying on Asstt. CIT v. Sun Investment (2011) 8 ITR 33 (Del-Trib), the matter was remanded back to AO to verify whether any exempted income had been earned by assessee during the relevant assessment year on the investment towards share application money and decide the issue in accordance with law after giving an opportunity of hearing to assessee.