Tag Archives: Section 14A

No sec 14A Disallowance if no exempt income was earned during the year: Madras HC

HIGH COURT OF MADRAS Commisioner of Income-tax, Central 1, Chennai v. Chettinad Logistics (P.) Ltd. RAJIV SHAKDHER AND R. SURESH KUMAR, JJ. T.C.A. NO. 24 OF 2017 MARCH  13, 2017 T.R. Senthil Kumar for the Appellant. S. Sridhar for the Respondent. JUDGMENT Rajiv Shakdher, J. – This is an appeal filed under Section 260 A… Read More »

Burden on assessee to prove interest-free funds exceeded value of investment to escape section 14A disallowance

Held The burden is upon the assessee to show and prove that interest free fund far exceeds the value of investment and thereafter, to justify the quantification of amount of Rs. 4 lakhs towards disallowance for the exempted income. In the present case, the said burden has not been discharged satisfactorily and thereafter, the assessing… Read More »

No Depreciation on Leasehold rights in land , it not intangible Asset

Held we hold that by virtue of lease only an interest in land is created which does not qualify for allowance e of depreciation. IN THE ITAT BANGALORE BENCH ‘C’ Cyber Park Development & Construction Ltd. v. Deputy Commissioner of Income-tax, Circle 11(2), Bangalore SUNIL KUMAR YADAV, JUDICIAL MEMBER AND INTURI RAMA RAO, ACCOUNTANT MEMBER… Read More »

Section 14A Disallowance applies to Deductions also

Whether provision of section 14A is applicable even in respect of income which has been claimed as a deduction under Chapter VIA and more specifically under Section 80P(2)(d) of the Income Tax Act, 1961 Held Yes In Section 14A, the first phrase is “for the purposes of computing the total income under this Chapter” which… Read More »

Proportionate interest is disallowable under Section 14A

Whether Proportionate interest is disallowable under Section 14A even if bank’s current deposits exceed tax-free investment ? Interest liable to be disallowed u/s 14A on proportionate basis even if assessee-bank’s current deposits exceed its investments yielding tax-free returns. Assessee-bank cannot escape disallowance of interest u/s 14A by taking the plea that its interest-free funds (own… Read More »