Held that the decision of the Supreme Court in Maxopp Investment Ltd. did not overrule the proposition that when interest-free funds are sufficient still disallowances under rule\u00a08D(2)(ii)\u00a0needed to be done. The Supreme Court had upheld the view that disallowances under section 14A cannot exceed the exempt income. The decision of the Supreme Court in Maxopp Investment Ltd. did not give a carte blanche to withdraw the relief granted under section\u00a014A. The Supreme Court held that relief granted from disallowances under section\u00a014A\u00a0on the plank that the investment being stock-in-trade could not be upheld. Hence, no relief could be granted to the assessee on this account. But, it still deserved relief on the other issue for own interest-free funds for the purpose of under rule\u00a08D(2)(ii)\u00a0and restricting the disallowances with that extent exempt income. These could not be the subject matter of rectification under section\u00a0154. Hence, the order passed by the Assessing Officer withdrawing the relief granted under section\u00a014A\u00a0earlier was not sustainable as the issue was debatable and it was not liable for rectification under section\u00a0154. Merits of issue could not be adjudicated in rectification proceedings. (AY. 2006-07, 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 154 : Rectification of mistake-Excess deduction-Merits of issue could not be adjudicated in rectification proceedings-Deduction allowed while giving effect to the order of Tribunal-Withdrawal of deduction granted earlier on the basis of judgement of Supreme Court decision-Debatable-Order of Rectification is held to be nor valid. [S. 14A, 36(1)(vii), 147] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":""},"categories":[21],"tags":[],"class_list":["post-26037","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-6LX","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=26037"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26037\/revisions"}],"predecessor-version":[{"id":26038,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26037\/revisions\/26038"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=26037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=26037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=26037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}