Judgements

Judgements

1. CIT vs. Leena Ramachandran (Kerala High Court) 

   Deduction of interest u/s 36(1)(iii) on borrowed funds utilized for the acquisition of shares is admissible only if shares are held as stock in trade and the assessee is engaged in trading in shares. So far as acquisition of shares in the form of investment is concerned and where…

2. Godrej & Boyce vs. DCIT (Bombay High Court) 

   Rule 8D r.w. S. 14A (2) is not arbitrary or unreasonable but can be applied only if assessee’s method not satisfactory. Rule 8D is not retrospective and applies from AY 2008-09. For earlier years, disallowance has to be worked out on “reasonable basis” u/s 14A (1)

3. Godrej Agrovet Ltd vs. ACIT (ITAT Mumbai) 

   In view of Godrej Boyce Mfg Co 328 ITR 81 (Bom) Rule 8D is applicable only prospectively i.e. from AY 2008-09 and not for earlier years. The facts showed that the assessee had made the investment in shares out of its own funds and the borrowed funds were entirely…

https://itatonline.org/archives/index.php/minda-investments-vs-dcit-itat-delhi-s-14a-disallowance-has-to-be-on-basis-of-nexus-between-income-expenditure-not-on-adhoc-estimate-basis