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 › DCIT vs. Citizen Hotels (ITAT Mumbai)

DCIT vs. Citizen Hotels (ITAT Mumbai)

Posted on by editor
COURT:
CORAM:
SECTION(S):
GENRE:
CATCH WORDS:
COUNSEL:
DATE: (Date of pronouncement)
DATE: May 8, 2009 (Date of publication)
AY:
FILE:
CITATION:

Click here to download the judgement (citizen_hotel_daga_capital_14A.pdf)

S. 14A & Daga Capital cannot put assessee in worse position

The assessee earned dividend income of Rs. 7.57 lakhs but the AO disallowed Rs. 20.73 lakhs u/s 14A as being relatable to the said income. The CIT (A) gave part relief. In deciding cross appeals, HELD

As the assessee had earned tax-free dividend income, s.14A was applicable. The question of determination of the disallowable amount has to be worked out by the AO as per Rule 8D as held the Special Bench judgement in ITO Vs. Daga Capital Management Pvt. Ltd. (2008) 119 TTJ (Mum) (SB) 289. However, the disallowance u/s 14A in the fresh proceedings cannot exceed the original amount disallowed by the AO in the assessment order.

See Also: ACIT vs. Indexport Ltd (ITAT Mumbai) where the same view has been taken after considering Assam Travels 199 ITR 1 (SC).

See Also: New Rule 8D – A lesson in tight rope walking? by CA Anant N. Pai

Related Posts:

  • ITO vs. Iraisaa Hotels Pvt. Ltd (ITAT Mumbai) After the passing of the order of the Tribunal the Department has come forward with the final order of the SEBI by stating that, though, it was available at the time of hearing of appeal but it could not be brought to the notice of the Tribunal. Thus, as could…
  • Boutique Hotels India (P) Ltd vs. ACIT (ITAT Delhi) It is not as if mistake of a legal advisor, however, gross and inexcusable, will entitle an assessee to condonation of delay in filing of appeal. The facts of the case are to be examined to ascertain if there had been negligence or gross want of skill, competence or knowledge…
  • DCIT vs. JSW Limited (ITAT Mumbai) In the light of the above discussions, we are of the considered view that rather than taking a pedantic view of the rule requiring pronouncement of orders within 90 days, disregarding the important fact that the entire country was in lockdown, we should compute the period of 90 days by…
  • DCIT vs. Piramal Realty Pvt. Ltd (ITAT Mumbai) Even amendment to section 68 brought by Finance Act, 2012 does not refer to valuation. The insertion of the proviso to section 68 of the Act by Finance Act, 2012 casts an additional onus on the closely held companies to prove source in the shareholders subscribing to the shares of…
  • Shantivijay Jewels Ltd vs. DCIT (ITAT Mumbai) We find that DJ had admitted of issuing bogus bills. But, nowhere he had admitted that he had issued accommodation bills to the assessee. In our opinion, there is subtle but very important difference in issuing bogus bills and issuing accommodation bills to a particular party. The difference becomes very…
  • DCIT vs. Kargwal Products P. Ltd (ITAT Mumbai) The assessment was processed under section 143(1). The assessment was reopened on 29.03.2014 without four year from the end of relevant Assessment Year. We have noted that the Assessing Officer nowhere mentioned in the reasons recorded that any tangible material either from assessment record or from other source has come…

Related Judgements

  1. DCIT vs. NITS Softech (ITAT Delhi) 

    Where a notice issued u/s 158BD was vague, showed non-application of mind on the part of the issuing authority and had been issued in a casual manner, held it did not meet the requirements of law and the resultant assessment … DCIT vs. NITS Softech (ITAT Delhi) Read…
  2. E-Gain Communication vs. ITO (ITAT Pune) (5.3 MB) 

    Where the assesee was a captive company rendering software development services to its parent company and was entitled to receive actual cost + 5% and it was agreed that the Transactional Net Margin Method (“TNMM”) was the appropriate method for determining arms’ length price.Read more ›
  3. 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…
  4. 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,…
  5. Kuber Tobacco vs. DCIT (ITAT Delhi – Special Bench) 

    Though the issue and service of notice relates to procedural law S. 292-BB takes away the valuable right of an assessee to challenge the validity of assessment during the course of appellate proceedings and creates a new disability on the assessee by debarring him from challenging the validity of…