The CBDT has issued Circular No. 5 of 2014 dated 11.02.2014 in which the issue as to whether disallowance under section 14A and Rule 8D can be made in cases where the corresponding exempt income has not been earned during the financial year has been considered in great detail.
CBDT Circular No. 5 of 2014 dt. 11.02.2014 on applicability of s. 14A & Rule 8D (684.5 KiB, 27,806 hits)
[…] in the absence of any tax-exempt income. Toward this, while the ld. Pr.CIT relies on the Board Circular 5/2014, the ld. Authorized Representative (AR), the assessee’s counsel, was during hearing at pains […]
[…] See also Alliance Infrastructure Projects (ITAT Bang), ACIT vs. M. Baskaran (ITAT Chennai) & Circular No.5/2014 dated 11.2.2014 […]
[…] The same view is taken in ACIT vs. M. Baskaran (ITAT Chennai) after reference to Circular No.5/2014 dated 11.2.2014. In Sundaram Asset Management (ITAT Chennai) it was held that s. 14A does not apply if the gains on […]
[…] deleted it. Before the Tribunal the department relied on Cheminvest Ltd 121 ITD 318 (SB) & Circular No.5/2014 dated 11.2.2014 and argued that even if the assessee has not earned any exempt income, still disallowance u/s 14A […]
[…] 14A/ Rule 8D: No disallowance can be made if there is no exempt income. Cheminvest (SB) & CBDT Circular are not good […]
why in spite of circular by CBDT AOs function irresponsibly is highlighted so there is something basically wrong in administration of tax management in country clearly indicates government does not work under constitutional basic tenets, perhaps not able to understand constitution! that way i wonder what kind of public servants we have!