The Tax Publishers2021 TaxPub(DT) 0710 (Guj-HC)

INCOME TAX ACT, 1961

Section 14A read with Rule 8D

In view of the decision rendered in the case of Dy. CIT v. Vasco Sales & Marketing Corporation [(2015) 66 taxmann.com 366 (Ker) : 2015 TaxPub(DT) 3887 (Ker-HC)], the question as proposed by revenue in respect of disallowance made by AO under section 14A read with rule 8D was no longer res integra.

Disallowance under section 14A - Expenditure against exempt income - Issue no longer res integra -

Revenue filed appeal against the order of Tribunal in not upholding the entire addition made by AO under section 14A read with rule 8D. Held: The question as proposed by the revenue, was no longer res integra in view of the decision rendered in the case of Dy. CIT v. Vasco Sales & Marketing Corporation [(2015) 66 taxmann.com 366 (Ker) : 2015 TaxPub(DT) 3887 (Ker-HC)]. This judgement refers to and rely upon the Supreme Court decision in the case of S.A. Builder Ltd. v. CIT(A), Chandigarh [(2007) 288 ITR 1 (SC) : 2007 TaxPub(DT) 0833 (SC)]. In view of the settled position of law, the disallowance under section 14A would not be permissible and thus, it was not found that the Tribunal had committed any error.

Followed:S.A. Builder Ltd. v. CIT(A) (2007) 288 ITR 1 (SC) : 2007 TaxPub(DT) 0833 (SC), Dy. CIT v. Vasco Sales & Marketing Corporation [(2015) 66 taxmann.com 366 (Ker) : 2015 TaxPub(DT) 3887 (Ker-HC)].

REFERRED :

FAVOUR : In favour of assessee

A.Y. : 2012-13



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