Case law on section 14a

This query is : Resolved 
 


Querist : Anonymous (Querist) 19 April 2012

LATEST CASE LAW ON SECTION 14A


Yogesh Agarwal (Expert)
19 April 2012

There are several case laws. I am citing the gist of the latest one available with me.


" [2012] 18 taxmann.com 333 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'F'
Relaxo Footwears Ltd.
v.
Additional Commissioner of Income-tax, Range-15, New Delhi*

Section 14A of the Income-tax Act, 1961, read with rule 8D of the Income-tax Rules, 1962 - Expenditure incurred in relation to income not includible in total income - Assessment year 2008-09 - Whether earning of an income in a particular year is not a sine qua non for allowing an expenditure; and, thus, income may be 'nil', yet expenditure incurred in pursuit of earning such income is deductible - Held, yes - Whether similar proposition will apply while interpreting provision contained in section 14A(1) - Held, yes - Whether, therefore, in absence of an income which is not includible in total income, provision of section 14A can still be invoked to disallow expenditure relatable to income not includible in total income - Held, yes - Whether, however, there cannot be an assumption of some kind of in-built expenditure; some facts must be there on record to show that expenditure was actually incurred in relation to earning of exempt income - Held, yes - Assessee had made certain investments, income wherefrom was exempt - Assessing Officer disallowed expenditure incurred for earning said income under section 14A - Assessee claimed that no expenditure had been incurred for earning exempt income - Commissioner (Appeals), however, upheld order of Assessing Officer on assumption that whenever exempt income is earning, there will be some expenditure incurred in relation thereto - Whether such an assumption by Commissioner (Appeals) could not form basis for making disallowance under rule 8D - Held, yes - Whether both Assessing Officer and Commissioner (Appeals) had not examined assessee's claim at all and had not followed provisions of section 14A(1) - Held, yes - Whether, therefore, disallowance under section 14A could not be upheld - Held, yes [In favour of assessee]"

Some more citation

Dy. CIT v. Jindal Photo Ltd. [IT Appeal No. 814 (Delhi) of 2011, dated 23-9-2011]; Maxopp Investment Ltd. v. CIT [2011] 203 Taxman 364/15 taxmann.com 390 (Delhi) and Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2010] 194 Taxman 203 (Bom.),



You need to be the querist or approved CAclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :






× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x
  SHARE THIS