|The Tax Publishers2021 TaxPub(DT) 0620 (Guj-HC)
INCOME TAX ACT, 1961
Where Interest income received during the year was more than interest paid by the assessee then no disallowance under section 14A was called for.
Disallowance under section 14A - Expenditure against exempt income - Interest income earned being more than interest paid -
Issue arose for consideration as to whether Appellate Tribunal was justified in deleting the disallowance of Rs. 10,78,591 made by AO on account of interest expenses under section 14A read with rule 8D(ii). Held: Interest income received during the year was more than interest paid by the assessee for all three assessment years. Tribunal has concurred with the CIT(A) on the question of deletion of disallowance for interest under rule 8D(2)(ii) of the Rules. In view of the same, the appeal was dismissed and question proposed could not be considered as substantial question of law.
FAVOUR : In assessee's favour.
A.Y. : 2010-11
IN THE GUJARAT HIGH COURT
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