2015 (5) TMI 264 - HC - Income Tax

Disallowance u/s 14A r.w.r. 8D - AO was not satisfied with the explanation offered by the assessee that proper disclosures were made with regard to the expenditure incurred for earning income exempt - appellate authority deleted disallowance - Held that - Whether or not the expenditure incurred for the purpose of earning the exempt income has been properly explained is essentially a question of fact. Both the appellate authority and the learned Tribunal were of the opinion that the expenditure was properly established. There is as such no scope for any interference with the concurrent finding of fact recorded by the learned Tribunal and the appellate authority. There is thus no reason why the appeal should be admitted. - Decided against revenue.

Summary

The High Court of Calcutta dismissed the Revenue's appeal regarding the application of rule 8D for expenditure incurred for earning exempt income under section 14A of the Income-tax Act, 1961. The appellate authority and Tribunal found the explanation provided by the assessee to be satisfactory, leading to the dismissal of the appeal.