ITO, NEW DELHI vs. M/S. MODERATE LEASING & CAPITAL SERVICES LTD., NEW DELHI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that while disallowance under Section 14A read with Rule 8D is applicable, it cannot exceed the amount of exempt income earned. Following the jurisdictional High Court's decision, the disallowance was confirmed at Rs. 264/-.
What were the facts?
The assessee company reported exempt dividend income of Rs. 1700/-. The Assessing Officer disallowed Rs. 99047514/- under Section 14A read with Rule 8D. The CIT(A) restricted this disallowance to Rs. 264/-.
What were the issues?
Whether the disallowance under Section 14A read with Rule 8D can exceed the exempt income earned by the assessee, and the correctness of the CIT(A)'s computation of disallowance.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(1)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Joint Investments Pvt. Ltd. v. CIT803 citing372 ITR 694 · 2015 · HC · Read judgment
Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI
Before: SHRI I.C.SUDHIR & SHRI PRASHANT MAHARISHI
O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is preferred by revenue against the order of the ld CIT(A)-V, New Delhi dated 06.06.2014 by which the disallowance of Rs. 99047514/- made by the ld Assessing Officer u/s 14A of the Income Tax Act vide order u/s 143(3) of the Act dated 05.12.2011 for AY 2009-10 was deleted. 2. The revenue has preferred following grounds of appeal:- “1. Whether on the facts and circumstances of the case and in law, the ld CIT(A) erred in deleting the additions of Rs. 99047514/- made by the AO on account of disallowance u/s 14A read with Rule 8D. 1.1 Whether on the facts and circumstances of the case and in law, the ld CIT(A) has ignored that the disallowance was made according to the section 14A read with Rule 8D of the Income Tax Rule?
2. Whether on the facts and circumstances of the case and in law, the ld CIT(A) has ignored that the facts of Asstt. Year 2011-12 are not similar to the asstt. Year 2009-10?”
3. The brief facts of the case is that the assessee company filed its return of income on 29.09.2009 for Rs. 3176580/-. During the year the assessee has received a sum of Rs. 1700/- as dividend and claimed the same as exempt. The ld Assessing Officer after show cause made disallowance u/s 14A of the Act amounting to Rs. 99047514/- applying provisions of Rule 8D. the assessee contested the same before the first appellate authority who recomputed the disallowance u/s 14A of the Act applying Rule 8D of the Income Tax Rules after remand report of the assessee at
More judgments on Section 14A
- Blacksoil Capital Private Limited (As… vs DCIT, Circle-1(1), HyderabadITA 2217/HYD/2026[2017-18]Status: Disposed9 Oct 2026AY 2017-18
- Hiral Construction, Mumbai vs ITO Ward 42(1)(2), MumbaiITA 8431/MUM/2025[2017-18]Status: Disposed8 Oct 2026AY 2017-18
- The Dy DIT (It) 1(2), Mumbai vs M/S Citi Bank N.A, MumbaiITA 4981/MUM/2007[2002-2003]Status: Disposed8 Oct 2026AY 2002-2003
- M/S. Citi Bank N.A., Mumbai vs The Addl DIT (It) RG-1, MumbaiITA 4970/MUM/2007[2002-2003]Status: Disposed8 Oct 2026AY 2002-2003
- M/S American Express Bank Ltd., Mumbai vs The Jt DIT (It)1(1), MumbaiITA 9414/MUM/2004[2000-2001]Status: Disposed8 Oct 2026AY 2000-2001
Recent GST High Court judgments
Search GST case law →- M/S Sita Enterprises vs. Office Of The CommissionerUttarakhand · 26 Oct 2026
- Capri Global Capital LTD Through Represented By Its Law Officer Mr. Varun Kaljoria vs. The State Of Madhya Pradesh Through Principal SecretaryMadhya Pradesh · 26 Oct 2026
- Sri Tatiparthy Venkata Swamy vs. The State Of Andhra PradeshAndhra Pradesh · 25 Oct 2026
- Piyush Shantilal Veera vs. State Of U.P.Allahabad · 23 Oct 2026
- Tvl. Pooja Shri Traders vs. The Deputy State Tax Officer - 1Madras · 23 Oct 2026