When is disallowance not sustainable in law as per settled legal position?

Last updated: 20 August 2021

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This Income Tax Appellate Tribunal order addresses disallowance claims under Section 14A for assessment years 2015-16 and 2016-17. The Assessing Officer (AO) made an additional disallowance of Rs. 38.99 Lacs based on 0.5% of average investments. However, the Tribunal found that without recorded satisfaction, this additional disallowance could not be sustained in law and was therefore deleted.

Court :
ITAT Mumbai

Brief :
The only grievance of the assessee in aforesaid appeals for Assessment Year (AY) 2015-16 & 2016-17 is disallowance u/s 14A. The facts are pari-materia the same in both the years and therefore, the appeals were heard together and are now being disposed-off by way of this common order for the sake of convenience & brevity.

Citation :
I.T.A. No.354 & 355/Mum/2020

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 1442821_4239_1627977483_ita_354_of_shardul.pdf

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Judgement posted by

Poojitha Raam Vinay

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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