{"id":4591,"date":"2012-03-26T08:16:05","date_gmt":"2012-03-26T08:16:05","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=4591"},"modified":"2012-03-26T08:16:05","modified_gmt":"2012-03-26T08:16:05","slug":"cit-vs-machino-plastic-ltd-delhi-high-court-in-remand-s-14a-disallowance-cannot-exceed-original-disallowance","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-machino-plastic-ltd-delhi-high-court-in-remand-s-14a-disallowance-cannot-exceed-original-disallowance\/","title":{"rendered":"CIT vs. Machino Plastic Ltd (Delhi High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=663\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=663&varname2=machino_14A_quantum.pdf'; }, 100)\" ><strong>Click here to download the judgement (machino_14A_quantum.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nIn remand, s. 14A disallowance cannot exceed original disallowance<br \/>\n<\/strong><\/p>\n<p>The AO made a disallowance u\/s 14A of Rs. 45 Lakhs on the ground that the assessee had not been able to segregate expenses relating to earning of dividend income and that borrowed funds had been used to fund the investments. The CIT (A) reduced the quantum of disallowance &#038; the department accepted that. In the assessee\u2019s appeal, the Tribunal totally deleted the disallowance. On appeal by the department, HELD: <\/p>\n<blockquote><p>The AO should examine &#038; compute the disallowance on the basis of what is laid down in <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/maxopp-investment-ltd-vs-cit-delhi-high-court-no-s-14a-or-rule-8d-disallowance-without-showing-how-assessee-calculation-wrong-only-real-expenditure-can-be-disallowed\/\">Maxopp Investment Ltd<\/a><\/strong> 203 TM 364 (Del). However, <strong><em>the quantum of disallowance, if any, to be made by the AO will not exceed the disallowance which was made in the original assessment order as reduced by the CIT(Appeals)<\/em><\/strong>.<\/p><\/blockquote>\n<div class=\"journal2\">\nThe same view has been taken in <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/acit-vs-punjab-state-coop-mktg-itat-chandigarh-s-14a-disallowance-cannot-exceed-exempt-income\/\">ACIT vs. Punjab State Coop &#038; Mktg<\/a> <\/strong> (ITAT Chandigarh) <\/p>\n<\/div>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The AO should examine &#038; compute the disallowance on the basis of what is laid down in <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/maxopp-investment-ltd-vs-cit-delhi-high-court-no-s-14a-or-rule-8d-disallowance-without-showing-how-assessee-calculation-wrong-only-real-expenditure-can-be-disallowed\/\">Maxopp Investment Ltd<\/a><\/strong> 203 TM 364 (Del). However, <strong><em>the quantum of disallowance, if any, to be made by the AO will not exceed the disallowance which was made in the original assessment order as reduced by the CIT(Appeals)<\/em><\/strong><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-machino-plastic-ltd-delhi-high-court-in-remand-s-14a-disallowance-cannot-exceed-original-disallowance\/\">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":[4,5],"tags":[],"class_list":["post-4591","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/4591","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=4591"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/4591\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=4591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=4591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=4591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}