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“disallowance under section 14A”

DisallowancesSection 14ASection 14A2,288 judgments

The decision most relied on for disallowance under section 14A is CIT v. Reliance Petroproducts Pvt. Ltd. (322 ITR 158), cited in 2,228 judgments on BharatTax.

Leading authorities on disallowance under section 14A

CIT v. Reliance Petroproducts Pvt. Ltd.
322 ITR 158 · 2010 · Supreme Court
2,228
citing judgments

Penalty under Section 271(1)(c) for furnishing inaccurate particulars or concealment of income is not automatically leviable if the assessee has made a full disclosure of all particulars and the addition or disallowance arises from a difference of opinion.

CIT v. Reliance Utilities & Power Ltd.
313 ITR 340 · 2009 · High Court
2,118
citing judgments

Where an assessee claims that investments were made out of own funds, interest disallowance under Section 14A read with Rule 8D may not apply if the assessee demonstrates the availability of sufficient interest-free funds to cover such investments.

Maxopp Investment Ltd. v. CIT
402 ITR 640 · 2018 · Supreme Court
1,596
citing judgments

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.

Cheminvest Ltd. v. CIT
378 ITR 33 · 2015 · High Court
1,569
citing judgments

A disallowance under Section 14A of the Income-tax Act, 1961, for expenditure incurred in relation to exempt income cannot be made if the assessee has not earned any exempt income during the relevant previous year.

S.A. Builders Ltd. v. CIT
288 ITR 1 · 2007 · Supreme Court
1,484
citing judgments

Interest paid on borrowed funds cannot be disallowed merely because the assessee made interest-free advances, provided those advances were made for business purposes and commercial expediency. The Revenue cannot dictate a businessman's commercial decisions, but the assessee bears the onus to prove the business expediency.

CIT v. HDFC Bank Ltd.
366 ITR 505 · 2014 · High Court
1,261
citing judgments

When an assessee possesses interest-free funds sufficient to cover investments yielding tax-free income, it is presumed that such investments were made from these interest-free funds, precluding disallowance of interest expenditure under Section 14A.

Godrej & Boyce Mfg. Co. Ltd. v. DCIT
328 ITR 81 · 2010 · High Court
1,183
citing judgments

Rule 8D, for computing disallowance under Section 14A for expenses related to exempt income, applies from Assessment Year 2008-09 onwards; for prior years, a reasonable disallowance must be made. The disallowance under Section 14A cannot exceed the actual exempt income earned.

ACIT v. Vireet Investment Pvt. Ltd.
165 ITD 27 · 2017 · ITAT
882
citing judgments

No disallowance under section 14A can be made while computing book profits under section 115JB unless the expenditure is debited to the profit and loss account and satisfies clause (f) of Explanation 1 to section 115JB(2).

Judgments citing disallowance under section 14A

ACIT, Circle- 4(1), New Delhi vs. Bajaj Resource Ltd., Jaipur

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

ITA 4018/DEL/2018[2014-15]Status: DisposedITAT Delhi24 Sept 2021AY 2014-15

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava

For Appellant: Shri Sandeep Jhanwar, C.AFor Respondent: Shri Bhopal Singh, Sr. DR
Section 14A

considered to be expenditure incurred in relation to tax free income on bonds and shares and as a corollary, there should be no disallowance under Section 14A of the Act. On the other hand, the counsel for the revenue refers to the reasoning ... funds and the assessee has available, non-interest-bearing funds larger than the investments made in tax- free securities then in such cases, disallowance under Section 14A cannot be made.” 20. And at para 28 of the same order, the Hon'ble Apex Court observed as under: “28. The above

Pawan Kumar Bansil, Delhi vs. ACIT, Circle- 62(1), New Delhi

In the result, this appeal by Assessee is allowed

ITA 5261/DEL/2018[2014-15]Status: DisposedITAT Delhi23 Sept 2021AY 2014-15

Bench: Shri Amit Shukla & Shri Anadee Nath Misshra

For Appellant: NoneFor Respondent: Shri Avikal Manu, Sr. DR
Section 143(3)Section 14A

/Del/2018 Shri Pawan Kumar Bansil. (B.1) However, the Assessing Officer rejected this explanation of the assessee, holding that the disallowance under Section 14A of I.T. Act is to be made irrespective of whether any exempt income had been earned during the financial year or not; and further that ... material that assessee should have earned such exempt income during the financial year under consideration.” (B.1.1) The Assessing Officer went ahead with the disallowance under Section 14A of I.T. Act, and computed the disallowance of Rs. 26,61,443/- under Rule 8D of I.T. Rules. (C) Aggrieved, the assessee filed

DCIT, Circle- 27(1), New Delhi vs. Usha International Ltd., New Delhi

In the result the appeal of the revenue is dismissed

ITA 3318/DEL/2018[2014-15]Status: DisposedITAT Delhi22 Sept 2021AY 2014-15

Bench: Shri Amit Shukla & Shri Prashant Maharishiasstt. Year: 2014-15

For Appellant: Shri V.P. Gupta, AdvocateFor Respondent: Shri Rajesh Kumar, Sr. DR
Section 143(3)Section 14ASection 36

Holcim India P. Ltd., (2014) 272 CTR (Del.) 282 and Cheminvest Ltd. v. CIT (2015) 378 ITR 33 (Del.) the disallowance under section 14A read with Rule 8D of Income Tax Rules is restricted to Rs. 7,12,047/- i.e. the amount of dividend income. Since the assessee company

DCIT, New Delhi vs. M/S. Jaypee Capital Services Ltd., New Delhi

In the result, ITA.No.3559/Del

ITA 3559/DEL/2016[2012-13]Status: DisposedITAT Delhi21 Sept 2021AY 2012-13

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastava

For Appellant: And Shri Ashish Goel, C.AFor Respondent: Shri Bhuvnesh Kulshreshtha
Section 132Section 153A

noted that assessee has tax free exempt income of Rs.60,718/-. He, therefore, confronted the assessee to explain as to why disallowance under section 14A read with Section 8D should not be applied. It was explained by the assessee that it has received gross dividend of Rs.60 ... Accordingly, Grounds of Appeal Number. (d) of the Revenue is dismissed. 11. Grounds of Appeal Number (e) relates to disallowance under section 14A of the I.T. Act, 1961 of Rs.67,98,422/- made by the A.O. and deleted by the Ld. CIT(A). 84 ITA.No.3558 & 3559/Del./2016 M/s. Jaypee

DCIT, New Delhi vs. M/S. Jaypee Capital Services Ltd., New Delhi

In the result, ITA.No.3559/Del

ITA 3558/DEL/2016[2011-12]Status: DisposedITAT Delhi21 Sept 2021AY 2011-12

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastava

For Appellant: And Shri Ashish Goel, C.AFor Respondent: Shri Bhuvnesh Kulshreshtha
Section 132Section 153A

noted that assessee has tax free exempt income of Rs.60,718/-. He, therefore, confronted the assessee to explain as to why disallowance under section 14A read with Section 8D should not be applied. It was explained by the assessee that it has received gross dividend of Rs.60 ... Accordingly, Grounds of Appeal Number. (d) of the Revenue is dismissed. 11. Grounds of Appeal Number (e) relates to disallowance under section 14A of the I.T. Act, 1961 of Rs.67,98,422/- made by the A.O. and deleted by the Ld. CIT(A). 84 ITA.No.3558 & 3559/Del./2016 M/s. Jaypee

M/S Wel Intertrade Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3999/DEL/2016[2010-11]Status: DisposedITAT Delhi16 Sept 2021AY 2010-11

Bench: Shri N.K. Billaiya & Shri Amit Shukla

For Appellant: Shri C.S. Agarwal, Sr.AdvFor Respondent: Shri Prakash Dubey, Sr.D.R
Section 143(3)Section 14A

Without prejudice and in the alternative, learned CIT(A) has grossly erred in failing to appreciate that for the purpose of making disallowance under section 14A of the Act only such investment can be taken into consideration on which assessee has earned exempt income and such investment on which

Hero Future Energies P. Ltd., New Delhi vs. DCIT, Circle- 11(1), New Delhi

The appeal of the assessee are partly allowed holding that disallowance confirmed by the ld

ITA 4860/DEL/2018[2014-15]Status: DisposedITAT Delhi14 Sept 2021AY 2014-15

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Somit Agarwal, AdvocateFor Respondent: Ms. Anima Barnwal, Sr. D. R
Section 143(3)Section 14A

Commissioner of Income Tax, Circle 11 (1) New Delhi was partly allowed. The only issue involved in this appeal is the disallowance under Section 14A read with Rule 8D confirmed by the ld. CIT (Appeals) of Rs.85,32,527/-. 2. The assessee is a company engaged in the business ... nature and, therefore, the same should not be considered for disallowance. The Assessing Officer rejected the explanation of the assessee and worked out disallowance under Section 14A applying Rule 8D. For the purpose of disallowance under Rule 8D(2)(i) he picked up the same 1% of the salary

Indiamart Intermesh Ltd., New Delhi vs. Addl.CIT, Range-4, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 6850/DEL/2017[2014-15]Status: DisposedITAT Delhi13 Sept 2021AY 2014-15

Bench: Ms. Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri R. K. Kapoor, C. AFor Respondent: Ms. Anima Barnwal, Sr. D. R
Section 14A

querry by ld AO, Assessee did not give any basis for arriving at this disallowance nor any explanation was furnished as to why disallowance under Section 14A of the Act should not be made according to Rule 8D. 6. The Assessing Officer noted that assessee has a huge investment made ... vehicle loans. Therefore, it is apparent that such vehicle loan is not an indirect interest expenditure, which could be considered for making disallowance under Section 14A of the Act under Rule 8D(2)(ii). Further it is the mandate of the Hon’ble Delhi High Court that for the purpose

DCIT, Circle- 11(1), New Delhi vs. Hcl Comnet Systems and Services Ltd., New Delhi

ITA 385/DEL/2018[2013-14]Status: DisposedITAT Delhi25 Aug 2021AY 2013-14

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Aditya Vohra, AdvocateFor Respondent: Ms. Anima Baranwal, Senior DR
Section 14A

expenditure incurred during the year with investments made or exempt income earned nor pointing out an error in the computation of disallowance under section 14A of the Act made by the Appellant. 1.2 Without prejudice, that on the facts and circumstances of the case ... 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 correct. It will be in those cases where the assessee in his return has himself apportioned

Hcl Comnet Systems & Services Ltd., New Delhi vs. DCIT, Circle- 11(1), New Delhi

ITA 137/DEL/2018[2014-15]Status: DisposedITAT Delhi25 Aug 2021AY 2014-15

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Aditya Vohra, AdvocateFor Respondent: Ms. Anima Baranwal, Senior DR
Section 14A

expenditure incurred during the year with investments made or exempt income earned nor pointing out an error in the computation of disallowance under section 14A of the Act made by the Appellant. 1.2 Without prejudice, that on the facts and circumstances of the case ... 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 correct. It will be in those cases where the assessee in his return has himself apportioned

Hcl Comnet Systems & Services Ltd., New Delhi vs. DCIT, Circle- 11(1), New Delhi

ITA 136/DEL/2018[2013-14]Status: DisposedITAT Delhi25 Aug 2021AY 2013-14

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Aditya Vohra, AdvocateFor Respondent: Ms. Anima Baranwal, Senior DR
Section 14A

expenditure incurred during the year with investments made or exempt income earned nor pointing out an error in the computation of disallowance under section 14A of the Act made by the Appellant. 1.2 Without prejudice, that on the facts and circumstances of the case ... 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 correct. It will be in those cases where the assessee in his return has himself apportioned

Hcl Comnet Ltd., New Delhi vs. DCIT, Circle- 11(1), New Delhi

ITA 135/DEL/2018[2013-14]Status: DisposedITAT Delhi25 Aug 2021AY 2013-14

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Aditya Vohra, AdvocateFor Respondent: Ms. Anima Baranwal, Senior DR
Section 14A

expenditure incurred during the year with investments made or exempt income earned nor pointing out an error in the computation of disallowance under section 14A of the Act made by the Appellant. 1.2 Without prejudice, that on the facts and circumstances of the case ... 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 correct. It will be in those cases where the assessee in his return has himself apportioned

DCIT, Circle- 11(1), New Delhi vs. Hcl Comnet Systems & Services Ltd., New Delhi

ITA 100/DEL/2018[2014-15]Status: DisposedITAT Delhi25 Aug 2021AY 2014-15

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh(Through Video Conference)

For Appellant: Shri Aditya Vohra, AdvocateFor Respondent: Ms. Anima Baranwal, Senior DR
Section 14A

expenditure incurred during the year with investments made or exempt income earned nor pointing out an error in the computation of disallowance under section 14A of the Act made by the Appellant. 1.2 Without prejudice, that on the facts and circumstances of the case ... 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 correct. It will be in those cases where the assessee in his return has himself apportioned

Ganesha Securities Pvt. Ltd., New Delhi vs. ITO, Ward-10(1), New Delhi

The appeal of the assessee is partly allowed

ITA 5899/DEL/2017[2014-15]Status: DisposedITAT Delhi25 Aug 2021AY 2014-15

Bench: Shri Kul Bharata N D Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Sanjay Aggarwal, C. AFor Respondent: Shri Najmi [CIT] – DR
Section 143(3)Section 14A

Court in the case of ACB India Ltd. Vs. ACIT (supra) in which it is held that for the purpose of working out disallowance under Section 14A of the Act, only the investment from which exempt income is earned should be considered. He also referred to Page ... therefore, as decided by the Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. CIT (supra) the disallowance under Section 14A of the Act cannot exceed the exempt income. In view of this, we direct the ld. Assessing Officer to restrict the disallowance

DCIT, New Delhi vs. M/S. Rrpr Holding Pvt. Ltd., New Delhi

In the result, the appeal filed by the Revenue in ITA No

ITA 192/DEL/2013[2009-10]Status: DisposedITAT Delhi18 Aug 2021AY 2009-10

Bench: Shri N.K. Billaiya & Shri Pawan Singh[A.Y 2009-10]

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Smt. Sushma Singh, CIT- DR
Section 14A

which are already subject matter of disallowance in the computation of the assessee company, for the purpose of computing the disallowance under section 14A of the Income Tax Act, 1961. 2. That the interest/financial charges incurred by the appellant company for acquiring the shares in NTDV Limited as sustained ... Appeals) for the purpose of computing the disallowance under Section 14A of the Income Tax Act, 1961 is unjust and not in accordance with law. 3. That the application of 10% rate of profit as applied by Id. Assessing Officer / CIT (Appeals) on the interest received on Bank FDRs

DCIT, Circle- 21(1), New Delhi vs. Religare Enterprises Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 6432/DEL/2017[2013-14]Status: DisposedITAT Delhi04 Aug 2021AY 2013-14

Bench: Ms. Suchitra Kambledr. B. R. R. Kumar(Through Video Conferencing) Ita No. 6432/Del/2017 : Asstt. Year : 2013-14 Dcit, Vs Religare Enterprises Ltd., Circle-21(1), D-3, P-3B, District Centre, New Delhi Saket, New Delhi-110017 (Appellant) (Respondent) Pan No. Aaacv5888N Assessee By : Sh. Rohit Jain, Adv. Revenue By : None Date Of Hearing: 17.06.2021 Date Of Pronouncement: 04.08.2021

For Appellant: Sh. Rohit Jain, AdvFor Respondent: None
Section 14ASection 37(1)

Religare Enterprises Ltd. Appellant has further submitted that interest paid on loans taken for specific purposes cannot be considered for calculating disallowance under section 14A of the Act read with Rule 8D of Rules. It has submitted that during this AY it had allotted Unsecured Compulsorily Convertible Debentures (CCDs

Dalmia Bharat Sugar & Industries Ltd, New Delhi vs. Deputy Commissioner of Income-Tax, New Delhi

In the result appeal of the assessee for assessment year 2007 – 08 is partly allowed and appeal of the learned assessing officer for that year is dismissed

ITA 1044/DEL/2015[2005-06]Status: DisposedITAT Delhi03 Aug 2021AY 2005-06

Bench: Shri Prashant Maharishi & Shri K.N.Chary(Through Video Conferencing) M/S. Dalmia Bharat Sugar & Dcit, Industries Ltd. [Formerly Known Vs. As Dalmia Cement (Bharat) Ltd. Circle – 1, Ltu, 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dcit, M/S. Dalmia Bharat Sugar Circle – 1, Ltu, Vs. & Industries Ltd., New Delhi. 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dalmia Cement (Bharat) Ltd, Vs. Acit (Ltu), (Now Known As Dalmia Bharat Nbcc Plaza, New Delhi Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K (Appellant) (Respondent) Acit (Ltu), Vs. Dalmia Cement (Bharat) Ltd, Nbcc Plaza, New Delhi (Now Known As Dalmia Bharat Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K

For Appellant: Shri R. M. Mehta, FCAFor Respondent: Ms. Nidhi Srivastava, CIT DR
Section 143Section 254

company had been diverted for purposes of making investments in shares and securities and thus certain amount of interest is liable to be disallowed under section 14A of the Income- tax Act, 1961; and (iii) while considering the amount of salaries disallowable as expenditure for the purpose of calculation ... disallowance under section 14A of the Income- tax Act, 1961, the amount of salaries relatable to all the employees of the Finance Department ought not to be included inasmuch as the company had clearly intimated salary paid to specific employees placed in the said Department who were exclusively handling

DCIT, New Delhi vs. Dalmia Bharat Sugar & Industries Ltd, New Delhi

In the result appeal of the assessee for assessment year 2007 – 08 is partly allowed and appeal of the learned assessing officer for that year is dismissed

ITA 1036/DEL/2015[2005-06]Status: DisposedITAT Delhi03 Aug 2021AY 2005-06

Bench: Shri Prashant Maharishi & Shri K.N.Chary(Through Video Conferencing) M/S. Dalmia Bharat Sugar & Dcit, Industries Ltd. [Formerly Known Vs. As Dalmia Cement (Bharat) Ltd. Circle – 1, Ltu, 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dcit, M/S. Dalmia Bharat Sugar Circle – 1, Ltu, Vs. & Industries Ltd., New Delhi. 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dalmia Cement (Bharat) Ltd, Vs. Acit (Ltu), (Now Known As Dalmia Bharat Nbcc Plaza, New Delhi Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K (Appellant) (Respondent) Acit (Ltu), Vs. Dalmia Cement (Bharat) Ltd, Nbcc Plaza, New Delhi (Now Known As Dalmia Bharat Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K

For Appellant: Shri R. M. Mehta, FCAFor Respondent: Ms. Nidhi Srivastava, CIT DR
Section 143Section 254

company had been diverted for purposes of making investments in shares and securities and thus certain amount of interest is liable to be disallowed under section 14A of the Income- tax Act, 1961; and (iii) while considering the amount of salaries disallowable as expenditure for the purpose of calculation ... disallowance under section 14A of the Income- tax Act, 1961, the amount of salaries relatable to all the employees of the Finance Department ought not to be included inasmuch as the company had clearly intimated salary paid to specific employees placed in the said Department who were exclusively handling

DCIT (Ltu), New Delhi vs. M/S. Dalmia Cement (Bharat) Ltd., New Delhi

In the result appeal of the assessee for assessment year 2007 – 08 is partly allowed and appeal of the learned assessing officer for that year is dismissed

ITA 4166/DEL/2014[2007-08]Status: DisposedITAT Delhi03 Aug 2021AY 2007-08

Bench: Shri Prashant Maharishi & Shri K.N.Chary(Through Video Conferencing) M/S. Dalmia Bharat Sugar & Dcit, Industries Ltd. [Formerly Known Vs. As Dalmia Cement (Bharat) Ltd. Circle – 1, Ltu, 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dcit, M/S. Dalmia Bharat Sugar Circle – 1, Ltu, Vs. & Industries Ltd., New Delhi. 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dalmia Cement (Bharat) Ltd, Vs. Acit (Ltu), (Now Known As Dalmia Bharat Nbcc Plaza, New Delhi Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K (Appellant) (Respondent) Acit (Ltu), Vs. Dalmia Cement (Bharat) Ltd, Nbcc Plaza, New Delhi (Now Known As Dalmia Bharat Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K

For Appellant: Shri R. M. Mehta, FCAFor Respondent: Ms. Nidhi Srivastava, CIT DR
Section 143Section 254

company had been diverted for purposes of making investments in shares and securities and thus certain amount of interest is liable to be disallowed under section 14A of the Income- tax Act, 1961; and (iii) while considering the amount of salaries disallowable as expenditure for the purpose of calculation ... disallowance under section 14A of the Income- tax Act, 1961, the amount of salaries relatable to all the employees of the Finance Department ought not to be included inasmuch as the company had clearly intimated salary paid to specific employees placed in the said Department who were exclusively handling

Dalmia Bharat Sugar and Industries Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result appeal of the assessee for assessment year 2007 – 08 is partly allowed and appeal of the learned assessing officer for that year is dismissed

ITA 4124/DEL/2014[2007-08]Status: DisposedITAT Delhi03 Aug 2021AY 2007-08

Bench: Shri Prashant Maharishi & Shri K.N.Chary(Through Video Conferencing) M/S. Dalmia Bharat Sugar & Dcit, Industries Ltd. [Formerly Known Vs. As Dalmia Cement (Bharat) Ltd. Circle – 1, Ltu, 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dcit, M/S. Dalmia Bharat Sugar Circle – 1, Ltu, Vs. & Industries Ltd., New Delhi. 11Th & 12Th Floors, Hansalaya, 15 – Barakhamba Road, New Delhi – 110 001. Pan: Aaacd2281K (Appellant) (Respondent) Dalmia Cement (Bharat) Ltd, Vs. Acit (Ltu), (Now Known As Dalmia Bharat Nbcc Plaza, New Delhi Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K (Appellant) (Respondent) Acit (Ltu), Vs. Dalmia Cement (Bharat) Ltd, Nbcc Plaza, New Delhi (Now Known As Dalmia Bharat Sugar & Industries Ltd), Hansalya, 11Th & 12Th Floors, 15, Barakhamba Road, New Delhi Pan: Aaacd2281K

For Appellant: Shri R. M. Mehta, FCAFor Respondent: Ms. Nidhi Srivastava, CIT DR
Section 143Section 254

company had been diverted for purposes of making investments in shares and securities and thus certain amount of interest is liable to be disallowed under section 14A of the Income- tax Act, 1961; and (iii) while considering the amount of salaries disallowable as expenditure for the purpose of calculation ... disallowance under section 14A of the Income- tax Act, 1961, the amount of salaries relatable to all the employees of the Finance Department ought not to be included inasmuch as the company had clearly intimated salary paid to specific employees placed in the said Department who were exclusively handling