Click Here For Best Books On Taxation & Law. Upto 60% Off On Select Titles. Free Shipping & Pay On Delivery!
 

Click Here To Subscribe To Our Free Newsletter

Home › All Judgements › ACIT vs. Indexport Ltd (ITAT Mumbai)

ACIT vs. Indexport Ltd (ITAT Mumbai)

Posted on by editor
COURT:
CORAM:
SECTION(S):
GENRE:
CATCH WORDS:
COUNSEL:
DATE: (Date of pronouncement)
DATE: February 26, 2009 (Date of publication)
AY:
FILE:
CITATION:

S. 14A disallowance under Rule 8D cannot exceed original disallowance

Where the AO made a disallowance u/s 14A by estimating 10% of the expenses as being attributable to the tax free receipts and in the appeal before the Tribunal the department argued that in view of the judgement of the Special Bench of the ITAT in Daga Capital 26 SOT 603 the matter had to be remanded to the AO for applicability of Rule 8D and the judgement in Assam Travels 199 ITR 1 (SC) was relied on to contend that the remand could result in a larger disallowance than had been calculated by the AO, HELD that:

(i) While the matter had to be remitted to the AO to recalculate the disallowance under Rule 8D as held by the Special Bench, the assessee could not be worse off than it would have been if it had not filed an appeal against the assessment order. Accordingly, the AO was directed to restrict the disallowance to the original figure.

(ii) The ratio of Assam Travels was not applicable to the facts of the case.

Related Posts:

  • Technimont Pvt Ltd vs. ACIT (ITAT Mumbai) The effect of Hon’ble Supreme Court’s judgment in PVAL Kulandagan Chettiar 267 ITR 654 (SC) thus was clearly overruled by the legislative developments. It was specifically legislated that the mere fact of taxability in the treaty partner jurisdiction will not take it out of the ambit of taxable income of…
  • ACIT vs. Reliance Jio Infocomm Ltd (ITAT Mumbai) That is a classic case of a subtle unilateral treaty override. While, in India, the expression 'treaty override' is often loosely used for the situations where the provisions of tax treaty prevails over any inconsistent provisions of domestic law, this approach seems to be at variance with the international practices…
  • M/s. Deekay Gears vs. ACIT (ITAT Mumbai) This is amply clear from the Section 251(1)(a) and (b) and Explanation to Section 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before…
  • ACIT vs. Celerity Power LLP (ITAT Mumbai) We find from a perusal of the 'memorandum‘ explaining the purpose and intent behind the enactment of sub-section (xiiiib) to Sec. 47, that prior to its insertion, the 'transfer‘ of assets on conversion of a company into a LLP attracted levy of "capital gains" tax. The legislature in all its…
  • ACIT vs. Subhodh Menon (ITAT Mumbai) Section 56(2)(vii) does not apply to bonafide business transaction. As explained hereinabove, shares were issued by the company to comply with a covenant in the loan agreement with State Bank of India which required the promoters to increase the total net worth of the company to Rs. 150 crores by…
  • Sudhir Menon vs. ACIT (ITAT Mumbai) In view of consistent view of jurisdictional High Court and Delhi High Court, in the absence of pending return of income, the provisions of section 143(2) of the Act is clear that notice can be issued only when a valid return is pending for assessment. Accordingly, this notice has no…

Related Judgements

  1. Saurabh Srivastava vs. DCIT (ITAT Delhi Special Bench) 

    Consideration received by an assessee for agreeing not to compete constitutes a capital receipt even though (i) the period of restraint is only 18 months and (ii) the assessee continued service with the payer-company as Managing Director.
  2. ITO vs. Daga Capital (ITAT Mumbai – Special Bench) (1.7MB) 

    The words “in relation to” in s. 14A encompass not only the direct expense but also the indirect expense which has any relation to the exempt income. The argument that the words contemplate a “direct and immediate connection” between the expenditure and the exempt income cannot be accepted. Accordingly,…
  3. Hawkins Cookers vs. ITO (ITAT Mumbai) 

    For purposes of s. 145A, where an assessee follows the procedure laid down by the ICAI and the tax auditor reports in clause 12(b) of Form 3CD of the Tax Audit Report that no adjustment is required to be made on account of s. 145A, the unutilized modvat credit…
  4. DCIT vs. ING Investment (ITAT Mumbai) 

    For purposes of s. 14A, only the expenditure which is proved to have a nexus with the exempt income can be disallowed and not on an ad-hoc basis. Read more ›
  5. Avaya Global Connect vs. ACIT (1.2 MB) (ITAT Mumbai) 

    Where the assessee transferred its undertaking under a scheme of demerger which provided that neither the assessee nor its shareholders would receive any consideration from the transferee company as the value of the liabilities taken over were more than the value of the assets taken over and the assessee…