{"id":612,"date":"2010-08-12T08:14:39","date_gmt":"2010-08-12T08:14:39","guid":{"rendered":"http:\/\/www.itatonline.org\/info\/?p=612"},"modified":"2010-08-12T21:22:45","modified_gmt":"2010-08-12T21:22:45","slug":"s-14a-rule-8d-daga-capital-judgement-pronounced","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/s-14a-rule-8d-daga-capital-judgement-pronounced\/","title":{"rendered":"S. 14A, Rule 8D &#038; Daga Capital: Judgement Pronounced!"},"content":{"rendered":"<p>The Bombay High Court today (12.8.2010) pronounced judgement in <strong>Godrej &#038; Boyce vs. DCIT<\/strong>, the lead matter challenging the judgement of the Special Bench of the Tribunal in <a href=\"https:\/\/itatonline.org\/archives\/index.php\/ito-vs-daga-capital-itat-mumbai-special-bench-17mb\"><strong>ITO vs. Daga Capital<\/strong><\/a> 117 ITD 169 on the applicability of s. 14A &#038; Rule 8D. <\/p>\n<p>The core aspects of the judgement are the following:<\/p>\n<blockquote><p>(a) The argument that s. 14A does not apply to shares and units because (i) the income there from is not \u201ctax-free\u201d in view of the \u2018dividend distribution tax\u2019 paid by the payer &#038; (ii) the potentiality of taxable income arising on sale thereof is <strong>not acceptable<\/strong> because the dividend distribution tax is paid by the company u\/s 115-O on its own account and not on behalf of the shareholder;<\/p>\n<p>(b) Section 14A(2) &#038; (3) are constitutionally valid;<\/p>\n<p>(c) Rule 8D is <strong>NOT<\/strong> ultra vires s. 14A;<\/p>\n<p>(d) <strong>As Rule Rule 8D was introduced w.e.f. 24.3.2008, it is prospective and applies for AY 2008-09 and onwards<\/strong>;<\/p>\n<p>(e) For assessment years where Rule 8D is not applicable, the AO has to apply s. 14A on a &#8220;reasonable basis&#8221;;<\/p>\n<p>(f) On facts, the matter was remanded to the AO for reconsideration in the light of the law laid down. <\/p><\/blockquote>\n<div class=\"journal4\">Click <strong><a href=\"https:\/\/bit.ly\/Rule8D3\">here <\/a><\/strong>for the judgement.\n <\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Bombay High Court today (12.8.2010) pronounced judgement in <strong>Godrej &#038; Boyce vs. DCIT<\/strong>, the lead matter challenging the judgement of the Special Bench of the Tribunal in <a href=\"http:\/\/itatonline.org\/archives\/index.php\/ito-vs-daga-capital-itat-mumbai-special-bench-17mb\"><strong>ITO vs. Daga Capital<\/strong><\/a> 117 ITD 169 on the applicability of s. 14A &#038; Rule 8D. <\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/s-14a-rule-8d-daga-capital-judgement-pronounced\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_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":[1,6],"tags":[],"class_list":["post-612","post","type-post","status-publish","format-standard","hentry","category-all-information","category-supreme-courthigh-court-related"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=612"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/612\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}