Category: Tax Laws

Archive for the ‘Tax Laws’ Category


ACIT v. Claridges Hotels Pvt. Ltd. (20180 61 ITR 135 (Delhi) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income disallowance cannot be made .[ R.8D ]

DCIT v. Growmore Leasing & Investment Ltd. (2018) 168 ITD 1 (Mum) (Trib.)

S. 14A : Disallowance of expenditure – Exempt income –PSU bonds of NTPC – Disallowance was restricted to 1 percent of exempt income [ R.8D ]

Siddhesh Capital Market Services P. Ltd. v. (2018) 61 ITR 400 //53 CCH 427(Mum) (Trib)

S. 14A : Disallowance of expenditure – Exempt income -No disallowance can be made for securities held as stock in trade- Interest free funds available with assessee , no disallowance can be made [ R.8D, 36(1)(iii) ]

ACIT v. Progressive Constructions Ltd ( 2018) 161 DTR 289 /63 ITR 516/ 191 TTJ 549( SB) ( Hyd) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income during the relevant year no disallowance can be made .[ R.8D ]

Moonrock Hospitality P. Ltd. v. DCIT ( 2018) 61 ITR 667 (Delhi) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income earned during the relevant period , no disallowance can be made [ R.8D ]

DCIT v. Vantage Advertising P. LTD. (2018) 61 ITR 564 (Kolk) (Trib)

S. 14A : Disallowance of expenditure – Exempt income – AO cannot straight way make disallowance without rejecting the disallowance computed by the assessee [ R.8D ]

Arnav Gruh Ltd. v. DCIT (2018) 168 ITD 518 (Mum) (Trib.)

S. 14A : Disallowance of expenditure – Exempt income –Satisfaction to be recorded by the Assessing Officer ,it cannot be substituted by recorded satisfaction of Commissioner of Income tax ( Appeals) [ S. 251, R.8D ]

CIT v. Essar Teleholdings Ltd ( 2018) 401 ITR 445 / 162 DTR 225/ 300 CTR 561 / 253 Taxman 321 (SC) Editorial: CIT v. Firestone International P. LTD. ( 2015) 378 TR 558 ( Bom) (HC ) and CIT v. Essar Teleholdings Ltd ( Bom) (HC) is affirmed

S. 14A : Disallowance of expenditure – Exempt income –Rule 8D cannot be held to be applicable retrospectively and cannot be applicable to pending assessments [ R.8D ]

Maxopp Investment Ltd. v. CIT ( 2018) 402 ITR 640/ 164 DTR 1 /254 Taxman 325 (SC) PCIT v. State Bank of Patiala ( 2018) 402 ITR 640/ 164 DTR 1/254 Taxman 325 (SC) Editorial: Maxopp Investment Ltd v CIT ( 2012) 347 ITR 272 ( Delhi) (HC) is affirmed , Decision of special Bench in ITO v. Daga Capital Management ( 2009) 312 ITR (AT) 1 ( Mum) (SB) is referred

S. 14A : Disallowance of expenditure – Exempt income – Stock in trade – Controlling interest – Principle of apportionment-Only that expenditure which is “in relation to” earning dividends can be disallowed- AO has to record proper satisfaction on why the claim of the assessee as to the quantum of suo moto disallowance is not correct . [ R.8D ]

IIM Foundation v.ADIT (E) (2018) 61 ITR 186 (Delhi) (Trib)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions -High rate of profit margin- Hefty salary to related trustees, scholarship in foreign currency , use of luxury cars without maintaining the log book , denial of exemption was held to be justified – Donation to another trust was held to be application of income [ S. (2(15) , 11, 12, 13 ]