{"id":2900,"date":"2011-03-28T13:47:11","date_gmt":"2011-03-28T08:17:11","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2900"},"modified":"2011-03-28T13:47:11","modified_gmt":"2011-03-28T08:17:11","slug":"hoshang-d-nanavati-vs-acit-itat-mumbai-s-14a-disallowance-cannot-be-made-for-depreciation","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/hoshang-d-nanavati-vs-acit-itat-mumbai-s-14a-disallowance-cannot-be-made-for-depreciation\/","title":{"rendered":"Hoshang D Nanavati vs. ACIT (ITAT Mumbai)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=389\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=389&varname2=Hoshang_Nanavati_14A_depreciation_full.pdf'; }, 100)\" ><strong>Click here to download the judgement (Hoshang_Nanavati_14A_depreciation_full.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nS. 14A disallowance cannot be made for \u201cdepreciation\u201d<br \/>\n<\/strong><\/p>\n<p>The assessee, a partner in a firm of solicitors, received Rs 14 lakhs towards remuneration as a working partner and Rs 46 lakhs towards share of profit in the partnership. The question arose whether, given that the remuneration was taxable as business profits, <em>disallowance u\/s 14A could be made in respect of (a) depreciation and (b) deduction u\/s 80D<\/em> in respect of health insurance premium. HELD by the Tribunal: <\/p>\n<p>(a) <strong>S. 14A permits a disallowance of \u201cexpenditure incurred by the assessee\u201d and not of \u201callowance admissible\u201d to him<\/strong>. <em>There is a distinction between \u201cexpenditure\u201d and \u201callowance\u201d<\/em>. The expression \u201cexpenditure\u201d does not include allowances such as depreciation allowance. Accordingly, <strong><em>depreciation cannot be the subject matter of disallowance u\/s 14A<\/em><\/strong> (ratio of <strong>Nectar Beverages<\/strong> 314 ITR 314 (SC) followed);<\/p>\n<p>(b) Similarly, the <strong>deduction u\/s 80D is not expenditure for earning tax-free income<\/strong> but is a permissible deduction from gross total income under Chapter VIA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>S. 14A permits a disallowance of \u201cexpenditure incurred by the assessee\u201d and not of \u201callowance admissible\u201d to him<\/strong>. There is a distinction between \u201cexpenditure\u201d and \u201callowance\u201d. The expression \u201cexpenditure\u201d does not include allowances such as depreciation allowance. Accordingly, <strong>depreciation cannot be the subject matter of disallowance u\/s 14A<\/strong> (ratio of <strong>Nectar Beverages<\/strong> 314 ITR 314 (SC) followed)<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/hoshang-d-nanavati-vs-acit-itat-mumbai-s-14a-disallowance-cannot-be-made-for-depreciation\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-2900","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-tribunal"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=2900"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2900\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=2900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=2900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=2900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}