Assessee-company earned exempt dividend income from mutual funds and claimed that no expenditure was incurred to earn such exempt income as investments were made and liquidated within year with no opening or closing balances in balance sheet. \u00a0Assessing Officer made an ad-hoc disallowance under section 14A at 10% of exempt dividend income. Commissioner (Appeals) deleted disallowance noting that there were no opening or closing balances of mutual fund investments and Rule 8D was inapplicable on these facts.Tribunal dismissed revenue’s appeal. On appeal by revenue the Court held that since Assessing Officer had not provided any tangible basis for making adhoc disallowance of 10% of dividend income from mutual funds, no substantial question of law arose from Tribunal\u2019s order. \u00a0(AY.2015-16,\u00a0 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.14A : Disallowance of expenditure-Exempt income-Investments made and liquidated within year resulting in no opening or closing balances-Order of Tribunal deleting the ad hoc disallowance under section 14A at 10 percent of exempt income was affirmed. [S. 260A, R.8D] <\/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-59415","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fsj","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59415","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=59415"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59415\/revisions"}],"predecessor-version":[{"id":59416,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59415\/revisions\/59416"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}