Computation of Disallowance on Investments under the Income Tax Act

Last updated: 28 June 2021
Quick Summary
This Income Tax Appellate Tribunal case concerns Rain Industries Ltd. and a disallowance of expenses related to their investments, made under Section 14A of the Income Tax Act. The Assessing Officer disallowed expenses amounting to Rs. 1,86,77,787, arguing that even if exempt income wasn't earned, the disallowance applied. The assessee contested this, stating investments were made from own funds, accumulated profits, and were strategic or acquired under a scheme of arrangement.

Court :
ITAT Hyderabad

Brief :
This appeal filed by the assessee is directed against CIT(A) – 3, Hyderabad’s order dated 14/10/2019 for AY 2016-17 involving proceedings u/s 143(3) of the Income Tax Act, 1961 ; in short “the Act” on the following grounds:

Citation :
ITA No. 1843/H/2019

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