Sectioan 14 rule 8d

This query is : Resolved

c l saini (Querist)
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16 November 2013 Dear sir
1-we have invested in listed company Rs 5000.00 in f.y 2005 & also invested unlisted group company Rs 300000000.00(30crore) .
2- we have received dividend RS 10000.00 FROM LISTED COMPANY IN THR F.Y 12-13.
3- NO EXPENDITURE INCURRED FOR DIVIDEND
4- TOTAL INTEREST PAID RS. 40 CRORE IN THE COMPANY F.Y 12-13
QUERY:-
FOR CALCULATION U/S 14A (RULE D)WE SHOULD TAKE TOTAL INVESTMENT (300000000+5000) OR ONLY RS 5000.00 OR DIVIDEND RECEIVED AMOUNT RS 10000

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 November 2013 Rs 10000 is not relevant here.

You can take a stand that only Rs 5000 should be included for computation of disallowance under Rule 8D since investment in private companies can lead to both exempt or taxable income

For this you may refer: Pune ITAT judgment in the case reported 120 TTJ 397

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