{"id":4598,"date":"2012-03-29T08:34:15","date_gmt":"2012-03-29T08:34:15","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=4598"},"modified":"2012-03-29T08:35:41","modified_gmt":"2012-03-29T08:35:41","slug":"gillette-group-india-pvt-ltd-vs-acit-itat-delhi-s-14a-rule-8d-disallowance-cannot-exceed-total-expenditure","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/gillette-group-india-pvt-ltd-vs-acit-itat-delhi-s-14a-rule-8d-disallowance-cannot-exceed-total-expenditure\/","title":{"rendered":"Gillette Group India Pvt.Ltd. vs. ACIT (ITAT Delhi)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=664\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=664&varname2=Gillette_14A_Rule_8D_dividend.pdf'; }, 100)\" ><strong>Click here to download the judgement (Gillette_14A_Rule_8D_dividend.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nS. 14A &#038; Rule 8D Disallowance Cannot Exceed Total Expenditure<br \/>\n<\/strong><\/p>\n<p>In AY 2008-09, the assessee earned tax-free dividend income. Its\u2019 total expenditure as per the P&#038;L A\/c was Rs. 49 lakhs. The AO applied Rule 8D and made a disallowance u\/s 14A of Rs. 2.37 crores which was reduced by the CIT (A) to Rs. 1.78 crores. Before the Tribunal, the assessee claimed that <em>even assuming that the entire expenditure had been incurred to earn the dividend, the disallowance u\/s 14A &#038; Rule 8D could not exceed the expenditure incurred<\/em>. HELD accepting the plea:<\/p>\n<blockquote><p>U\/s 14A read with Rule 8D, disallowance can be made for the expenditure incurred for earning of exempt income. From the assessee\u2019s P&#038;L A\/c, it is evident that the total expenditure incurred was Rs. 49 lakhs only which was claimed as a deduction. <strong>The disallowance u\/s 14A &#038; Rule 8D cannot exceed the expenditure actually claimed by the assessee<\/strong>. Accordingly, the action of the AO &#038; CIT (A) in making disallowance in excess of total expenditure debited to P&#038;L A\/c is unjustified. <\/p><\/blockquote>\n<div class=\"journal2\">\nThe same view has been taken in <strong>Search Enviro Ltd<\/strong> (ITAT Mumbai) (<em>attached with file<\/em>)<\/p>\n<\/div>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U\/s 14A read with Rule 8D, disallowance can be made for the expenditure incurred for earning of exempt income. From the assessee\u2019s P&#038;L A\/c, it is evident that the total expenditure incurred was Rs. 49 lakhs only which was claimed as a deduction. <strong>The disallowance u\/s 14A &#038; Rule 8D cannot exceed the expenditure actually claimed by the assessee<\/strong>. Accordingly, the action of the AO &#038; CIT (A) in making disallowance in excess of total expenditure debited to P&#038;L A\/c is unjustified<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/gillette-group-india-pvt-ltd-vs-acit-itat-delhi-s-14a-rule-8d-disallowance-cannot-exceed-total-expenditure\/\">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-4598","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\/4598","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=4598"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/4598\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=4598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=4598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=4598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}