{"id":910,"date":"2009-08-31T19:04:03","date_gmt":"2009-08-31T19:04:03","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=910"},"modified":"2009-08-31T19:04:03","modified_gmt":"2009-08-31T19:04:03","slug":"topstar-mercantile-vs-acit-bombay-high-court","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/topstar-mercantile-vs-acit-bombay-high-court\/","title":{"rendered":"Topstar Mercantile vs. ACIT (Bombay High Court)"},"content":{"rendered":"\n\n
Click here to download the judgement (topstar_mercantile_daga_capital_14A.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n

S. 14A: ITAT cannot remand to apply Daga Capital <\/a> if AO has not made disallowance<\/strong><\/p>\n

In assessment proceedings, the AO raised a query about disallowance of expenditure attributable to exempted dividend income u\/s 14A. After considering the assessee\u2019s reply, no disallowance was made u\/s 14A, though interest expenditure was disallowed on the ground that it was not for business purposes. This was confirmed by the CIT (A). On appeal by the assessee, the Tribunal remanded the matter to the AO by observing that the AO should reconsider the matter in the light of Daga Capital Management<\/a><\/strong> 199 TTJ 289 (SB) (Mum). <\/em>On appeal by the assessee, HELD: <\/p>\n

As the AO had not made any disallowance u\/s 14A, the Tribunal could not have not touched the question of s. 14A and made observations prejudicial to the assessee <\/strong>while remanding the matter. It had no jurisdiction to issue directions to the AO decide afresh on the touchstone of s. 14A and Daga Capital Management Pvt. Ltd<\/strong>. Accordingly, the order of the Tribunal to the extent it directed consideration of applicability of s. 14A was quashed & set aside. <\/p>\n

\nSee Also: Cheminvest Ltd vs. ITO (ITAT Delhi Special Bench)<\/strong><\/a>, Daga Capital<\/strong><\/a> 117 ITD 169 (Mum)(SB), Indexport Ltd<\/strong> (ITAT Mumbai)<\/a>, Citizen Hotels<\/strong> (ITAT Mumbai)<\/a> and GE Capital Services<\/strong> (ITAT Delhi)<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As the AO had not made any disallowance u\/s 14A, the Tribunal could not have not touched the question of s. 14A and made observations prejudicial to the assessee <\/strong>while remanding the matter. It had no jurisdiction to issue directions to the AO decide afresh on the touchstone of s. 14A and Daga Capital Management Pvt. Ltd<\/strong>. Accordingly, the order of the Tribunal to the extent it directed consideration of applicability of s. 14A was quashed & set aside. <\/p>\n

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