Tag Archives: Section 14A

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

By | April 22, 2017

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

By | October 18, 2016

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

By | July 24, 2016

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 can’t exceed total expenses : CBDT

By | June 6, 2016

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES NOTIFICATION New Delhi, the 02nd June, 2016 S.O. 1949(E)- In exercise of the powers conferred by section 295 read with subsection (2) of section 14A of… Read More »

Nexus between the investments and interest bearing funds need to be established for disallowance under Section 14A

By | January 31, 2016

Held As regards the interest referred to in the second limb of Rule 8D of the Rules, the assessee contends that the amounts of investment in such securities in the period under consideration is much less than the amount of capital and surplus funds available with the Company and no portion of the borrowed funds… Read More »

Section 14A / Rule 8D cannot be automatically invoked : High Court

By | November 1, 2015

Section 14A / Rule 8D cannot be automatically invoked. It cannot be invoked if the AO does not record satisfaction as to why the assessee’s voluntary disallowance is not proper The Court disapproves of the AO invoking Section 14A read with Rule 8D(2) of the Rules without recording his satisfaction. The recording of satisfaction as… Read More »

No section 14A disallowance when assessee had not shown any exempt income

By | October 9, 2015

Where assessee had not shown any income under head ‘exempt income’ for which it claimed expenditure, disallowance under section 14A was not justified IN THE ITAT MUMBAI BENCH ‘E’ SM Energy Teknik and Electronics Ltd. v. Deputy Commissioner of Income-tax JOGINDER SINGH, JUDICIAL MEMBER AND RAJENDRA, ACCOUNTANT MEMBER IT APPEAL NOS. 1859 & 1495 (MUM.)… Read More »

Proportionate interest is disallowable under Section 14A

By | September 26, 2015

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 »

section 14A Expenditure incurred for exempt income

By | July 30, 2015

Question : Whether business loss incurred in the course of purchase and sale of mutual fund units is an expenditure incurred for earning exempt dividend income and, hence, not allowable under section 14A of the Income-tax Act,1961  ? Answer No, Section 14A can not be applied if no proximate cause exists between expenditure and exempt income Where assessee… Read More »