Rule 8D is not applicable on the Assessment year before Rule 8D come in to force

Last updated: 13 January 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
After hearing the rival submissions and on careful perusal of materials available on record keeping in view of the fact that since the assessment year involved in this appeal is relating to A.Yr. 2004-05 as per the decision of the Hon’ble Bombay High Court in the case of Godrej and Boyce Mfg. Pvt. Ltd. (supra) relied upon by the ld. Counsel for the assessee, Rule 8D is not applicable in the assessment year under consideration. This Tribunal has been taking a consistent view of sustaining the disallowance u/s 14A at 1% of the dividend income. Accordingly we direct the AO to disallow 1% of the dividend income as expenditure relevant to earning of dividend income. We order accordingly.

Citation :
Shri C.D.Rao, Accountant Member ITA No.1561/Kol/2008 Assessment Year: 2004-05 Dipajyoti Resouces Pvt. Ltd., Kolkata (PAN: AAACD 8849 H)(APPELLANT) Versus-I.T.O., Ward-11(4),Kolkata(RESPONDENT)