Maxopp Investment Ltd. v. CIT

402 ITR 640Supreme Court of India2018#21 most cited

What is Maxopp Investment Ltd. v. CIT authority for?

Disallowance under Section 14A is not automatic and requires the Assessing Officer to record satisfaction before applying Rule 8D. Only investments yielding exempt income are considered for disallowance, irrespective of their strategic nature.

1,596

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2016 to 2026.

Also referred to as

Maxopp Investment Ltd v CIT · Maxopp SC 2018 · Section 14A disallowance · Rule 8D application · expenditure for exempt income · only dividend bearing investments · satisfaction Section 14A(2) · strategic investment disallowance · disallowance not automatic · 402 ITR 640

Also reported as

91 Taxmann.com 154254 Taxmann 325301 CTR 489

Sections most often in play

Section 14ASection 143(3)Section 115JBSection 8DSection 37(1)Section 1961Section 250Section 143(2)
Read the full judgment

Issues it is cited on

section 14a(1)section 14a(2)strategic investmentdisallowance under section 14adisallowance u/s 14asection 10(34)section 14asection 36(1)(vii)section 40a(2)enduring benefitbook profitssection 115j

Judgments citing Maxopp Investment Ltd. v. CIT

M/S. Mundra International Container Terminal Pvt. Ltd., Kutch vs. The DCIT, Circle-2(1)(2), Ahmedabad

ITA 1916/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad22 Aug 2024AY 2016-17

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 143(3)Section 14A

…ble High Court in the case of Corrtech Energy Ltd. (223 Taxaman 130) has held that the disallowance u/s.14A has held that the disallowance u/s. 14A cannot exceed the exempt income. The Honourable Supreme Court in the case of Max Opp Investment Limited (2018) [402 ITR 640] has also upheld the decision of Punjab & Haryana High Court in the case of CIT Vs. Hero Cycles where I.T.A Nos. 1613 & 1916/Ahd/2019 and Ors. A.Ys. 2015-16 & 2016-17 Page No 4 Mundra International Container Pvt. Ltd. vs. DCIT disallowance u/s. 14A has been restricted to the exempt income. In view of the above, the disallowance u/s. 14A is rest…

The ACIT, Circle-2(1)(2), Ahmedabad vs. M/S. Mundra International Container Terminal Pvt. Ltd., Kutch

ITA 1872/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad22 Aug 2024AY 2016-17

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 143(3)Section 14A

…ble High Court in the case of Corrtech Energy Ltd. (223 Taxaman 130) has held that the disallowance u/s.14A has held that the disallowance u/s. 14A cannot exceed the exempt income. The Honourable Supreme Court in the case of Max Opp Investment Limited (2018) [402 ITR 640] has also upheld the decision of Punjab & Haryana High Court in the case of CIT Vs. Hero Cycles where I.T.A Nos. 1613 & 1916/Ahd/2019 and Ors. A.Ys. 2015-16 & 2016-17 Page No 4 Mundra International Container Pvt. Ltd. vs. DCIT disallowance u/s. 14A has been restricted to the exempt income. In view of the above, the disallowance u/s. 14A is rest…

The ACIT, Circle-2(1)(2), Ahmedabad vs. M/S. Mundra International Container Terminal Pvt. Ltd., Kutch

ITA 1711/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad22 Aug 2024AY 2015-16

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 143(3)Section 14A

…ble High Court in the case of Corrtech Energy Ltd. (223 Taxaman 130) has held that the disallowance u/s.14A has held that the disallowance u/s. 14A cannot exceed the exempt income. The Honourable Supreme Court in the case of Max Opp Investment Limited (2018) [402 ITR 640] has also upheld the decision of Punjab & Haryana High Court in the case of CIT Vs. Hero Cycles where I.T.A Nos. 1613 & 1916/Ahd/2019 and Ors. A.Ys. 2015-16 & 2016-17 Page No 4 Mundra International Container Pvt. Ltd. vs. DCIT disallowance u/s. 14A has been restricted to the exempt income. In view of the above, the disallowance u/s. 14A is rest…

Mundra International Container Terminal Pvt. Ltd., Kutch vs. The DCIT, Circle-2(1)(2), Ahmedabad

ITA 1613/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad22 Aug 2024AY 2015-16

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 143(3)Section 14A

…ble High Court in the case of Corrtech Energy Ltd. (223 Taxaman 130) has held that the disallowance u/s.14A has held that the disallowance u/s. 14A cannot exceed the exempt income. The Honourable Supreme Court in the case of Max Opp Investment Limited (2018) [402 ITR 640] has also upheld the decision of Punjab & Haryana High Court in the case of CIT Vs. Hero Cycles where I.T.A Nos. 1613 & 1916/Ahd/2019 and Ors. A.Ys. 2015-16 & 2016-17 Page No 4 Mundra International Container Pvt. Ltd. vs. DCIT disallowance u/s. 14A has been restricted to the exempt income. In view of the above, the disallowance u/s. 14A is rest…

Pr. Commissioner of Income Tax-1, Delhi vs. M/S Candor Kolkata One Hi-Tech Structure P. Ltd

ITA - 448 / 2024HC Delhi20 Aug 2024
Section 14ASection 14A(2)Section 80I

…$~251 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 448/2024, CM APPL. 47391-92/2024 PR. COMMISSIONER OF INCOME TAX-1, DELHI .....Appellant Through: Mr. Sanjay Kumar, SSC with Ms. Esha, Adv. versus M/S CANDOR KOLKATA ONE HI-TECH STRUCTURE P. LTD. .....Respondent Through: Mr. Rishabh Malhotra,Adv. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE RAVINDER DUDEJA % 20.08.2024 O R D E R 1. Having heard learned counsels for respective parties and on going through the judgment handed down by the Income Tax Appel…

Jagriti Job Finder Private Limited, New Delhi vs. PCIT Central - 1, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2133/DEL/2024[2018-19]Status: DisposedITAT Delhi14 Aug 2024AY 2018-19

Bench: Ms.Madhumita Roy & Shri Avdhesh Kumar Mishram/S Jagriti Job Finder Vs. Pcit (Central) -1 Private Limited, 222, 2Nd New Delhi-110055 Floor Hemkunt Chamber, 89, Nehru Place, New Delhi – 110019 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aabcj5974E Appellant .. Respondent

For Appellant: Sh. Ashwani Kumar &For Respondent: Sh. Sanjay Pandey
Section 139(1)Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 263

…ourt in the case of PCIT Vs. Indian Farmers & Fertilizers Co-operative Ltd. in ITA No. 597 of 2017. Keeping in view the judgment passed by the Hon’ble Supreme Court in different matters including in the matter of Maxopp Investment Limited Vs. CIT, reported in 402 ITR 640 (SC) that in the absence of exempt income no disallowance under Section 14A of the Act is called for as was the crux of the argument advanced by the Ld. A.R. On the other hand, the Ld. D.R relied upon the order passed by the authorities below. 10. We have heard the rival submissions made by the respective parties and we have also perused the rel…

Federal Bank Ltd, Kochi vs. ACIT Corp. Circle-1(1 ), Kochi

ITA 399/COCH/2023[2017-18]Status: DisposedITAT Cochin13 Aug 2024AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Sri.Gopi, CAFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 144Section 147Section 14ASection 36Section 36(1)(viii)

…nts of the Assessee and record his reasons as to why the claim of the Assessee qua the disallowance so offered by the Assessee is not being accepted. Reference in this regard was made to the following judicial pronouncements:  Maxopp Investments Ltd. Vs. CIT 402 ITR 640 (SC)  Godrej & Boyce Manufacturing Co.Ltd. 394 ITR 449(SC)  Hindustan Aeronautics Ltd. 143 Taxmann.com 357(Karn.)  West Bengal Infrastructure Development Finance Corporation Ltd. 143 Taxmann.com 135(Cal.)  Sociedade De Fomento Industrial Pvt.Ltd. 123 Taxmann.com 38 (Bom)  Marg Ltd. 120 Taxmann.com 84 (Mad)  Esillor India (P) Ltd. 137 Taxman…

Federal Bank Ltd, Kochi vs. ACIT Corp. Circle-1(1 ), Kochi

ITA 397/COCH/2023[2015-16]Status: DisposedITAT Cochin13 Aug 2024AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Sri.Gopi, CAFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 144Section 147Section 14ASection 36Section 36(1)(viii)

…nts of the Assessee and record his reasons as to why the claim of the Assessee qua the disallowance so offered by the Assessee is not being accepted. Reference in this regard was made to the following judicial pronouncements:  Maxopp Investments Ltd. Vs. CIT 402 ITR 640 (SC)  Godrej & Boyce Manufacturing Co.Ltd. 394 ITR 449(SC)  Hindustan Aeronautics Ltd. 143 Taxmann.com 357(Karn.)  West Bengal Infrastructure Development Finance Corporation Ltd. 143 Taxmann.com 135(Cal.)  Sociedade De Fomento Industrial Pvt.Ltd. 123 Taxmann.com 38 (Bom)  Marg Ltd. 120 Taxmann.com 84 (Mad)  Esillor India (P) Ltd. 137 Taxman…

Federal Bank Ltd, Kochi vs. ACIT Corp. Circle-1(1 ), Kochi

ITA 396/COCH/2023[2014-15]Status: DisposedITAT Cochin13 Aug 2024AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Sri.Gopi, CAFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 144Section 147Section 14ASection 36Section 36(1)(viii)

…nts of the Assessee and record his reasons as to why the claim of the Assessee qua the disallowance so offered by the Assessee is not being accepted. Reference in this regard was made to the following judicial pronouncements:  Maxopp Investments Ltd. Vs. CIT 402 ITR 640 (SC)  Godrej & Boyce Manufacturing Co.Ltd. 394 ITR 449(SC)  Hindustan Aeronautics Ltd. 143 Taxmann.com 357(Karn.)  West Bengal Infrastructure Development Finance Corporation Ltd. 143 Taxmann.com 135(Cal.)  Sociedade De Fomento Industrial Pvt.Ltd. 123 Taxmann.com 38 (Bom)  Marg Ltd. 120 Taxmann.com 84 (Mad)  Esillor India (P) Ltd. 137 Taxman…

Federal Bank Ltd, Kochi vs. ACIT Corp. Circle-1(1 ), Kochi

ITA 395/COCH/2023[2013-14]Status: DisposedITAT Cochin13 Aug 2024AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Sri.Gopi, CAFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 144Section 147Section 14ASection 36Section 36(1)(viii)

…nts of the Assessee and record his reasons as to why the claim of the Assessee qua the disallowance so offered by the Assessee is not being accepted. Reference in this regard was made to the following judicial pronouncements:  Maxopp Investments Ltd. Vs. CIT 402 ITR 640 (SC)  Godrej & Boyce Manufacturing Co.Ltd. 394 ITR 449(SC)  Hindustan Aeronautics Ltd. 143 Taxmann.com 357(Karn.)  West Bengal Infrastructure Development Finance Corporation Ltd. 143 Taxmann.com 135(Cal.)  Sociedade De Fomento Industrial Pvt.Ltd. 123 Taxmann.com 38 (Bom)  Marg Ltd. 120 Taxmann.com 84 (Mad)  Esillor India (P) Ltd. 137 Taxman…

Federal Bank Ltd, Kochi vs. ACIT Corp. Circle-1(1 ), Kochi

ITA 394/COCH/2023[2012-13]Status: DisposedITAT Cochin13 Aug 2024AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Sri.Gopi, CAFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 144Section 147Section 14ASection 36Section 36(1)(viii)

…nts of the Assessee and record his reasons as to why the claim of the Assessee qua the disallowance so offered by the Assessee is not being accepted. Reference in this regard was made to the following judicial pronouncements:  Maxopp Investments Ltd. Vs. CIT 402 ITR 640 (SC)  Godrej & Boyce Manufacturing Co.Ltd. 394 ITR 449(SC)  Hindustan Aeronautics Ltd. 143 Taxmann.com 357(Karn.)  West Bengal Infrastructure Development Finance Corporation Ltd. 143 Taxmann.com 135(Cal.)  Sociedade De Fomento Industrial Pvt.Ltd. 123 Taxmann.com 38 (Bom)  Marg Ltd. 120 Taxmann.com 84 (Mad)  Esillor India (P) Ltd. 137 Taxman…

Federal Bank Ltd, Kochi vs. ACIT Corp. Circle-1(1 ), Kochi

ITA 393/COCH/2023[2011-12]Status: DisposedITAT Cochin13 Aug 2024AY 2011-12

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Sri.Gopi, CAFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 144Section 147Section 14ASection 36Section 36(1)(viii)

…nts of the Assessee and record his reasons as to why the claim of the Assessee qua the disallowance so offered by the Assessee is not being accepted. Reference in this regard was made to the following judicial pronouncements:  Maxopp Investments Ltd. Vs. CIT 402 ITR 640 (SC)  Godrej & Boyce Manufacturing Co.Ltd. 394 ITR 449(SC)  Hindustan Aeronautics Ltd. 143 Taxmann.com 357(Karn.)  West Bengal Infrastructure Development Finance Corporation Ltd. 143 Taxmann.com 135(Cal.)  Sociedade De Fomento Industrial Pvt.Ltd. 123 Taxmann.com 38 (Bom)  Marg Ltd. 120 Taxmann.com 84 (Mad)  Esillor India (P) Ltd. 137 Taxman…

ACIT, Circle 16(1), Delhi vs. Nucleus Software Exports Limited, Delhi

In the result, Appeals filed by the Revenue in ITA Nos

ITA 3214/DEL/2023[2020-21]Status: DisposedITAT Delhi06 Aug 2024AY 2020-21

Bench: DR. B.R.R. KUMAR (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 140Section 14ASection 80G

…essee has not recorded any objective satisfaction as to why the allocation of indirect expenses made by the assessee is not sufficient to meet the expenses attributable for earning exempt dividend income. 1. In the case of Maxopp Investment Ltd. Vs. CIT [2018 402 ITR 640 the Hon’ble Supreme Court held as under:- “ 41) Having regard to the language of Section 14A(2) of the Act, read with Rule 8D of the Rules, we also make it clear that before applying the theory of apportionment, the AO needs to record satisfaction that having regard to the kind of the assessee, suo moto disallowance under Section 14A was not corr…

ACIT, Circle 16 (1), Delhi vs. Nucleus Software Exports Limited, Delhi

In the result, Appeals filed by the Revenue in ITA Nos

ITA 2959/DEL/2023[2017-18]Status: DisposedITAT Delhi06 Aug 2024AY 2017-18

Bench: DR. B.R.R. KUMAR (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 140Section 14ASection 80G

…essee has not recorded any objective satisfaction as to why the allocation of indirect expenses made by the assessee is not sufficient to meet the expenses attributable for earning exempt dividend income. 1. In the case of Maxopp Investment Ltd. Vs. CIT [2018 402 ITR 640 the Hon’ble Supreme Court held as under:- “ 41) Having regard to the language of Section 14A(2) of the Act, read with Rule 8D of the Rules, we also make it clear that before applying the theory of apportionment, the AO needs to record satisfaction that having regard to the kind of the assessee, suo moto disallowance under Section 14A was not corr…

Eastern India Educational Institution, Kolkata vs. DCIT(Exemption), Circle - 1(1), Kolkata

In the result, appeal filed by the assessee is partly allowed

ITA 616/KOL/2024[2017-18]Status: DisposedITAT Kolkata31 Jul 2024AY 2017-18

Bench: Sri Sanjay Garg & Sri Sanjay Awasthi

Section 14A

…some remaining expense were directly attributable to the running of the school, which was listed as one of the major activities of the appellant Trust. In fact, it is seen that ld. CIT(A) relied on the case of Maxopp Investment Ltd. vs. CIT reported in [2018] 402 ITR 640 (SC) and upheld the action of the AO. 1.2. Once again aggrieved with the action of ld. CIT(A) the appellant is before us through the following grounds of appeal: “1. That the order dated 27.02.2024 passed by learned CIT (Appeals)(NFAC) is bad in law as well as on facts. 2. That on the facts and in the circumstances of the case, the learned CIT (A…

Deputy Commissioner of Income Tax, Vadodara vs. Jayant Shantilal Sanghvi, Vadodara

In the result, appeal preferred by the Revenue is dismissed

ITA 1134/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad26 Jul 2024AY 2016-17

Bench: Ms. Suchitra Raghunath Kamble, Judical Member & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. No. 1134/Ahd/2023 ("नधा"रण वष" / Assessment Year : 2016-17) Deputy Commissioner Of Jayant Shantilal Sanghvi बनाम/ Pratham, Makrand Desai Income Tax Vs. Vadodara Road, Gotri, Vadodara, Gujarat 390007 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Anrps3651F (Appellant) .. (Respondent) Shri Ashesh R Rewar, Sr. Dr अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Shri Milin Mehta, A.R. 22/07/2024 Date Of Hearing Date Of Pronouncement 26/07/2024 O R D E R Per Shri Narendra Prasad Sinha, Am: This Appeal Is Filed By The Revenue Against The Order Of National Faceless Appeal Centre (Nfac), Delhi, (In Short ‘The Cit(A)’) Dated 06.11.2023 For The Assessment Year 2016-17. 2. The Brief Facts Of The Case Are That The Assessee, An Individual, E-Filed Return Of Income For A.Y. 2016-17 On 29.09.2016 Declaring Total Income Of Rs.13,82,36,020/-. In The Course Of Assessment, The Ao Found That The Assessee Had Declared Exempt Income Of Rs.4,02,26,125/- In Respect Of Profit

For Respondent: Shri Milin Mehta, A.R
Section 10(38)Section 14ASection 14A(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA RAGHUNATH KAMBLE, JUDICAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1134/Ahd/2023 ("नधा"रण वष" / Assessment Year : 2016-17) Deputy Commissioner of Jayant Shantilal Sanghvi बनाम/ Pratham, Makrand Desai Income Tax Vs. Vadodara Road, Gotri, Vadodara, Gujarat 390007 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : ANRPS3651F (Appellant) .. (Respondent) Shri Ashesh R Rewar, Sr. DR अपीलाथ" ओर से /Appellant by : ""यथ" क" ओर से/Respondent by : Shri Milin Mehta, A.R. 22/07/2024 Date of Hearing Date of Pronouncemen…

ITO, New Delhi vs. M/S Ansal Housing & Construction Ltd., New Delhi

In the result, the cross-objection filed by the assessee is dismissed

ITA 2731/DEL/2010[2007-08]Status: DisposedITAT Delhi26 Jul 2024AY 2007-08

Bench: Shri G.S.Pannu & Shri Kul Bharat[Assessment Year : 2007-08] Dcit, Vs Ansal Housing & Construction Ltd., Central Circle-20, Ugf-15, Indraprastha Building, 21, New Delhi. Barakhamba Road, New Delhi. Pan-Aaaca0377R Appellant Respondent

Section 143(3)Section 14ASection 80Section 80I

…ed on the following decisions wherein it has been held that Rule 8D is prospective in operation and cannot be applied to any assessment years prior to assessment year 2008-09: - CIT v. Essar Teleholdings Ltd.: 401 ITR 445 (SC) - Maxopp Investment Ltd. v. CIT: 402 ITR 640 (SC) That apart, it is respectfully submitted that section 14A of the Act can apply at best to an expenditure incurred in relation to income which does not form part of the total income. The provisions of section 14A clearly postulates disallowance of expenditure only in a case where it is proved that the expenses incurred have a real relationshi…

Chowdry Associates, New Delhi vs. ACIT, Circle-6(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 7718/DEL/2019[2013-14]Status: DisposedITAT Delhi24 Jul 2024AY 2013-14

Bench: Shri Saktijit Dey & Shri Naveen Chandra

For Appellant: Shri M.P. Rastogi, AdvFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR
Section 10(38)Section 14ASection 28

…14A has been elaborately dealt with by the Coordinate Bench of Delhi ITAT in AY 2014-15 in ITA no 6525/Del/2019 dated 14.09.2023 in assessee’s own case. Drawing support from the decision of the Hon'ble Supreme Court in the case of Maxopp Investment Vs. CIT 402 ITR 640 (SC), the ITAT deleted the addition u/s 14A. in AY 2014-15. 26. The ITAT Delhi Bench order (supra) dated 14.09.2023 in assessee’s own case for A.Y 2014-15 has categorically given a finding that “not a single word is discussed on the basis of financials or the P&L Account of the assessee company to show how this suo moto disallowance is not just…

DCIT-CC-III, Ludhiana vs. M/S Laxmi Energy & Foods Ltd., Chandigarh

In the result, the appeal of the Revenue is dismissed

ITA 33/CHANDI/2021[2011-12]Status: DisposedITAT Chandigarh10 Jul 2024AY 2011-12

Bench: Shri A.D. Jain & Dr Krinwant Sahayआयकर अपील सं./ Ita No. 33/Chd/2021 "नधा"रण वष" / Assessment Year: 2011-12 The Dcit, Vs. M/S Laxmi Energy & Foods बनाम Ltd., Central Circle-Iii, Sco 18-19, Sector 9-D, Ludhiana Ludhiana "थायी लेखा सं./Pan No: Aaacl3147J अपीलाथ"/ Appellant ""यथ"/ Repsondent ( Hybrid Mode ) "नधा"रती क" ओर से/Assessee By : Sh. Sudhir Sehgal, Advocate राज"व क" ओर से/ Revenue By : Shri Rohit Sharma, Cit Dr सुनवाई क" तार"ख/Date Of Hearing : 06.06.2024 उदघोषणा क" तार"ख/Date Of Pronouncement : 10.07.2024 आदेश/Order Per Dr. Krinwant Sahay, A.M.:

For Appellant: Sh. Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR
Section 14A

…R the appellant has shown exempt income u/s 10 (34) of the Act of Rs. 2,96,317 from dividend. The appellant has not shown any disallowance u/s 14A of the Act for such exempt income. It has been held by Hon'ble Supreme Court in the case Maxopp Investment Ltd. 402 ITR 640 that when the shares are held by the assessee not to earn exempt income but to retain controlling stake in the group companies, the dominant purpose test cannot be said to be relevant for the purpose of sectionl4A and disallowance u/s 14A can be made. Therefore, there is no merit in such argument made by the learned AR that as the said investment…

ACIT-2(1)(1), Aaykar Bhavan, Mumbai vs. Bank of Baroda, Bkc, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 3412/MUM/2023[2013-14]Status: DisposedITAT Mumbai10 Jul 2024AY 2013-14

Bench: Shri Amarjit Singh & Shri Raj Kumar Chauhan, Ita Nos.3409 & 3412/Mum/2023 (A.Ys. 2010-11 & 2013-14) Acit, Circle 2(1)(1) Vs. M/S Bank Of Baroda Room No. 575, 5Th Floor, 2Nd Floor, Baroda Aayakar Bhavan, Corporate Centre, C-26, M.K. Road, G Block, Bkc, Bandra Mumbai – 400 020 East, Mumbai- 400051 "थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb1534F Appellant .. Respondent

For Appellant: C. NareshFor Respondent: S. Srinivasu
Section 10(15)(iv)Section 143(3)Section 144Section 14A

…s & Power Ltd., CIT Vs. HDFC Bank Ltd. in ITA No. 330 of 2019 and the Tribunal’s decision in the case of DCIT vs India Advantage Securities Ltd. in ITA No. 671/Mum/2011 including Hon’ble Supreme Court in the case of Maxopp Investments Ltd. Vs. CIT, New Delhi (402 ITR 640) in accordance with the decisions after providing an opportunity to the assessee. However, the assessing officer while giving effect to the order of the ITAT again conformed the disallowance made u/s 14A r.w.Rule 8D. 3. In the appeal before the ld. CIT(A), the ld. CIT(A) has allowed the appeal of the assessee after following the decision of Mumb…