The Tax Publishers2020 TaxPub(DT) 1188 (Bom-HC) : (2020) 421 ITR 0142

INCOME TAX ACT, 1961

Section 14A

Disallowance under section 14A read with rule 8D of the Rules cannot exceed the assessee's exempt income.

Disallowance under section 14A - Expenditure against exempt income - Disallowance exceeding the exempt income itself -

Assessee challenged order of Tribunal confirming disallowance under section 14A of the Income Tax Act, 1961 in excess of exempt income earned by assessee during the assessment year in question . Held: Consistently different High Courts in the country have taken a view that the disallowance under section 14A read with rule 8D of the Rules cannot exceed the Assessee's exempt income. Thus, decision of Tribunal was reversed to the extent of limiting the disallowance under section 14A.

Followed:The Pr. CIT-10 v. HSBC Invest Direct (India) Ltd. 2019 TaxPub(DT) 1070 (Bom-HC); Pragathi Krishna Gramin Bank v. The Jt. CIT, Bellary Range (2018) 256 Taxman 349 (Karn) : 2018 TaxPub(DT) 4603 (Karn-HC); Pr. CIT-3 v. M/s. Rivian International (P) Ltd. 2017 TaxPub(DT) 5327 (Bom-HC); Cheminvest Ltd. v. CIT-VI (2015) 378 ITR 33 (Del-HC) : 2015 TaxPub(DT) 3520 (Del-HC)--DELHI HIGH COURT; CIT-IV v. Holcim India (P) Ltd. in (I.T.A. No. 486 of 2014, decided on 5-9-2014) : 2014 TaxPub(DT) 3780 (Del-HC); CIT -- I v. Corrtech Energy (P) Ltd. (2015) 372 ITR 97 (Guj-HC) : 2014 TaxPub(DT) 2072 (Guj-HC); CIT v. Winsome Textile Industries Ltd. (2009) 319 ITR 204 (P&H) : 2009 TaxPub(DT) 2012 (P&H-HC); CIT v. Abhishek Industries Limited. (2006) 286 ITR 1 (P&H) : 2006 TaxPub(DT) 1778 (P&H-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



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