9911796707
|
Home
Issues involved: Interpretation of disallowance u/s 14A of the Income Tax Act and applicability of Rule 8D of the Income Tax Rules 1962 for Assessment Year 2007-08.
Summary: The appeal was filed against the CIT(A)'s order confirming the disallowance made by the Assessing Officer of Rs. 10,75,221 u/s 14A of the Income Tax Act by applying Rule 8D of the Income Tax Rules 1962. The assessee argued that the disallowance was excessive and arbitrary, as the only expenditure incurred was in respect of earning dividend income of Rs. 72,116, which was directly credited to the bank account by ECS. The assessee contended that Rule 8D was not applicable for the relevant Assessment Year based on the decision of the jurisdictional High Court in the case of Godrej & Boyce Mfg P Ltd vs ACIT. The assessee also relied on a Tribunal decision in support of their position. The ld DR acknowledged that Rule 8D might not be applicable for the Assessment Year under consideration based on the mentioned High Court decision, suggesting that the issue required fresh adjudication. The Tribunal remitted the issue back to the Assessing Officer for fresh adjudication in accordance with the law and the decisions cited, including the one from the jurisdictional High Court and the Tribunal. Consequently, the appeal by the assessee was allowed for statistical purposes. The order was pronounced on the 5th day of August 2011.
|
