| COURT: |
|
| CORAM: |
|
| SECTION(S): |
|
| GENRE: |
|
| CATCH WORDS: |
|
| COUNSEL: |
|
| DATE: |
(Date of pronouncement) |
| DATE: |
May 8, 2009 (Date of publication) |
| AY: |
|
| FILE: |
|
| CITATION: |
|
|
|
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:
- 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…
- Renu T Tharani vs. DCIT (ITAT Mumbai) The assessee before us is closely involved with the transaction and it is inconceivable that the assessee will have no direct knowledge of the owners of the underlying company and settlors of the trust which has her, as she herself puts it, as beneficiary of such a huge amount. This…
- Carestream Health Inc vs. DCIT (ITAT Mumbai) The ld DR vehemently argued that the percentage of shareholding remains the same because reduction of shares had happened for all shareholders. We find that the ld DR relied on para 24 of the judgement of Special Bench of Mumbai Tribunal in 133 ITD 1 supra to support his proposition.…
- Celltick Technologies Ltd vs. DCIT (ITAT Mumbai) The Indian subsidiary of the assessee had for A.Y. 2015-16 to A.Y 2019-20 entered into an "APA‟ with the CBDT. As is discernible from the "APA‟, the functions of the subsidiary company inter alia included "marketing and sale of various software solutions" of the assessee company. As per the "APA‟…
- Dipesh Ramesh Vardhan vs. DCIT (ITAT Mumbai) As against the assessee's position, the primary material to make additions in the hands of assessee is the statement of Shri Vipul Bhat and the outcome of search proceedings on his associated entities including M/s SAL. However, there is nothing on record to establish vital link between the assessee group…
Recent Comments