Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 38 - ITAT DELHIAddition made u/s 14A read with Rule 8D - Held that:- Following the law laid down in GODREJ & BOYCE MANUFACTURING COMPANY LIMITED VERSUS [2017 (5) TMI 403 - SUPREME COURT], MAXOPP INVESTMENT LTD [2011 (11) TMI 267 - DELHI HIGH COURT] and CHEMINVEST LIMITED [2015 (9) TMI 238 - DELHI HIGH COURT] we are of the considered view that the findings returned by AO that, making disallowance u/s 14A by the AO by relying upon CBDT Circular dated 05/2014 dated 11.02.14 that disallowance u/s 14A is to be made even if no exempt income has earned during the year under consideration, is no longer a good law because where the assessee has not earned any dividend income forming part of the total income during the year under assessment, section 14A read with Rule 8D is not attracted. So making disallowance u/s 14A read with Rule 8D in a mechanical manner without recording any dissatisfaction as to the working out made by the assessee that he has not incurred any expenses nor earned any dividend income during the year under assessment is not permissible under law. So consequently AO as well as CIT(A) have eared in disallowing/confirming the addition made u/s 14A read with Rule 8D - Decided in favour of assessee.
|