2013 (1) TMI 864 - AT - Income Tax

Summary

Issues involved: The judgment involves the disallowance of expenditure made under section 14A of the Income Tax Act for assessment years 2007-08 and 2008-09.

For assessment year 2007-08:
The Revenue's appeal challenged the deletion of interest payment disallowance made by the Assessing Officer. The Commissioner (Appeals) partly accepted the assessee's contentions and reduced the disallowance from Rs. 15,38,089 to Rs. 10,00,000. The Tribunal held that Rule-8D cannot be applied for disallowance under section 14A for this assessment year. The matter was remanded back to the Assessing Officer for a fresh examination of the issue.

For assessment year 2008-09:
The assessee appealed against the disallowance of Rs. 22,37,989 under section 14A. The Assessing Officer rejected the assessee's explanation and calculated the disallowance based on his own working. The Commissioner (Appeals) gave partial relief without specifying the disallowance amount. The Tribunal found that the assessee's detailed submissions were not properly considered by the authorities below. The issue was remanded back to the Assessing Officer for a fresh examination.

The Tribunal allowed both the Revenue's and the assessee's appeals for statistical purposes, setting aside the orders of the Commissioner (Appeals) and remanding the matters back to the Assessing Officer for fresh consideration in accordance with the law.