#section 14a

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Disallowance u/s 14A read with Rule 8D cannot exceed exempt income

Disallowance u/s 14A read with Rule 8D cannot exceed exempt income

Daga Global Chemicals Pvt. Ltd vs. ACIT (ITAT Mumbai), ITA No. 5592/MUM/2012, Date of Pronouncement : 01/01/2015

Assessee argued that No expenditure directly or indirectly was incurred by the assessee for earning exempt income and further the investment in shares was made in earlier years out of own funds and not out of borrowed funds, therefore, no disallowance u/s 14A r.w. Rule 8D is to be made.

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Section 14A disallowance Under Income Tax Act, 1961

Section 14A disallowance Under Income Tax Act, 1961

 CA Ram Bajaj

Introduction

1. Section 14A was first inserted by the Finance Act, 2001. However, same was inserted with retrospective effect from 1-4-1962. The inserted section reads as under:—

’14A. Expenditure incurred in relation to income not includible in total income.—For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure…

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CIT Vs. Winsome Textile Industries Limited (Punjab & Haryana High Court)

CIT Vs. Winsome Textile Industries Limited (Punjab & Haryana High Court)

HIGH COURT OF PUNJAB & HARYANA

Commissioner Of Income-Tax.

Vs.

Winsome Textile Industries Limited.

(2009) 319 ITR 204 (P&H)

Dated 25/8/2009

JUDGMENT

ADARSH KUMAR GOEL J.-The Revenue has preferred this appeal under section 260A of the Income-tax Act, 1961 (in short, “the Act”), against the order of the Income-tax Appellate Tribunal, Chandigarh Bench-B, in I.T.A. No. 613/Chandi/2007, dated November…

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Section14A & Rule 8D disallowance cannot be made if there is no exempt income

Section14A & Rule 8D disallowance cannot be made if there is no exempt income

CIT Vs. Holcim India P. Ltd. (Delhi High Court) ITA No. 486/2014 & ITA No. 299/2014, Date of Decision: September 05, 2014

On the issue whether the respondent-assessee could have earned dividend income and even if no dividend income was earned, yet Section 14A can be invoked and disallowance of expenditure can be made, there are three decisions of the different High Courts directly on the issue…

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In absence of exempt income, Section 14A disallowance cannot be added to Section 115JB book profits

In absence of exempt income, Section 14A disallowance cannot be added to Section 115JB book profits

Minda Sai Limited Vs. Income Tax Officer (ITAT Delhi), I.T.A. No.: 2974/Del/13, Date- 09.01.2015

Disallowance of Rs 2,00,225 under section 115JB on the ground that this amount pertains to disallowance under section 14A -

Learned counsel for the assessee has invited our attention to Hon’ble Delhi High Court’s decision in the case of CIT Vs Holcim India Pvt Ltd [ 2014 TIOL 1586 HC DEL IT] wherein…

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Disallowance u/s 14A in cannot be made in respect of Audit Fees

Disallowance u/s 14A in cannot be made in respect of Audit Fees

ITO v. Pioneer Radio Training Services Pvt. Ltd. (Delhi ITAT), ITA No. 4448/Del/2013, Order Dated 19-1-2015

The auditor’s remuneration and legal & professional charges incurred for maintenance of statutory books and its audit etc. were required to be incurred irrespective of whether the Company had any income or not and hence, there was absolutely no basis for considering a part of such…

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No Disallowance U/s. 14A if Interest Free Fund exceeds fund Invested in Exempted Income Investments

No Disallowance U/s. 14A if Interest Free Fund exceeds fund Invested in Exempted Income Investments

CIT Vs. Suzlon Energy Ltd. (Gujarat High Court), Tax Appeal No. 223 Of 2013, Date- 03.04.2013

Issue-Whether the Appellate Tribunal is right in law and on facts in deleting disallowance u/s. 14A of the I.T Act in respect of interest expenses incurred for investments in subsidiaries and administrative expenses such as staff salary of corporate office, audit fees, building rent and communication…

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S. 14A No disallowance towards exempt income earned on strategic investments

S. 14A No disallowance towards exempt income earned on strategic investments

Interglobe Enterprises Ltd.Vs. DCIT (ITAT Delhi), I.T.A. No.1580/Del/2013, I.T.A. No.1362 & 1032/Del/2013, Date- 04.04.2014

The assessee had made significant investments in the shares of subsidiary companies which are definitely not for the purpose of earning exempt income. The Hon’ble Tribunal in I.T.A. No.3349/Del/2011 in the case of Promain Ltd., after relying upon a Kolkatta judgment of…

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