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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

Ganesh Srinivasan, Maharashtra vs. National Faceless Appeal Centre (NFAC), Delhi

In the result, the appeal by the assessee for the assessment year 2008-

ITA 4607/MUM/2023[2011-12]Status: DisposedITAT Mumbai03 Jun 2024AY 2011-12

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

For Appellant: Shri Ganesh SrinivasanFor Respondent: Shri Dinesh A Chourasia
Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250

direct the AO to delete the balance addition of Rs.1,71,47,470. 12. The second issue, which arises for consideration, pertains to disallowance under section 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 (“the Rules”). 13. We have considered the submissions of both ... applied as the assessee has earned exempt income. In Ganesh Srinivasan. ITA no.4608/Mum./2023 ITA no.4607/Mum./2023 response thereto, the assessee submitted that disallowance under section 14A of the Act should not be made as he has not incurred any expenditure whatsoever to earn the exempt income. The assessee submitted

ITO, Ward, Palampur vs. The Kangra Central Cooperative Bank Limited, Kangra

In the result, appeal of the Department is partly allowed for statistical purposes

ITA 583/CHANDI/2022[2018-19]Status: DisposedITAT Chandigarh31 May 2024AY 2018-19

Bench: Us Is Filed Under Section 253 Of The Income Tax Act, As Amended From Time To Time. The Respondent Is A Cooperative Bank.

For Appellant: Shri Ashwani Kumar, C.A and Ms. Deepali Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 14ASection 250Section 253

under the Act has been earned during a particular year? ii) Whether the First Appellate Authority is right in law in deleting the disallowance under Section 14A of the Income Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962 ignoring the legislative intent of the statute ... Whether on the facts and in the circumstances of the case, the First Appellate Authority was right in law in deleting the disallowance under Section 14A of the Income Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962 ignoring the scheme of Section 14A

DCIT-2(3)(1), Mumbai vs. Paranjapee Schemes Construction Ltd., Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 4090/MUM/2023[2020-21]Status: DisposedITAT Mumbai31 May 2024AY 2020-21

Bench: Shri Amit Shukla & Smt Renu Jauhridcit-2(3)(1) Vs. Paranjapee Schemes Room No. 552, 5Th Floor, Construction Ltd. Aaykar Bhawan, 1, Somnath, Cts. No. 988, Mumbai-400020 Ram Mandir Road, Vile Parle (E), Near Tilak Mandir, Mumbai-400057 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaccp1941Q Appellant .. Respondent

For Appellant: Shri. Yogesh Thar &For Respondent: Shri H. M. Bhatt
Section 143Section 144Section 14ASection 250

However, aggrieved with the said order, the revenue has preferred appeal on two grounds which are discussed hereinbelow: Ground No. 1 : Disallowance under section 14A r.w.rule 8D: i. Facts of the case are that the assessee had made suo-moto disallowance to the tune ... assessee, balance amount of Rs. 2,52,24,846/- (3,06,04,372-53,79,526) was added on account of disallowance under section 14A and rule 8D. ii. Before the Ld. CIT(A), the assessee contended that the AO cannot invoke rule 8D without recording any satisfaction with regard

ACIT, Circle-10(1), New Delhi vs. Hero Electronix P.Ltd, New Delhi

In the result, appeal is dismissed

ITA 1370/DEL/2023[2017-18]Status: DisposedITAT Delhi31 May 2024AY 2017-18

Bench: Shri Saktijit Dey, Vice- & Shri Naveen Chandraassessment Year: 2017-18

Section 14ASection 40A(2)Section 40A(2)(b)

assessee has received dividend income of Rs.14,49,391/-, which was claimed to be exempt. Noticing that the assessee has not made any disallowance under section 14A read with Rule 8D, the Assessing Officer called upon the assessee to explain, as to why disallowance should not be made by applying ... Whereas, applying Rule 8D(2)(iii), the Assessing Officer has computed disallowance at Rs.2,18,60,548/-. It is trite law, disallowance under section 14A read with Rule 8D cannot exceed the quantum of exempt income earned during the year. That being the settled legal position, we uphold the decision

Tml Industries Ltd., Vadodara vs. The Income Tax Officer, Ward-2(1)(4), Now the DCIT, Circle-2(1)(1), Vadodara

In the result, appeal of the assessee is partly allowed

ITA 14/AHD/2023[2014-15]Status: DisposedITAT Ahmedabad30 May 2024AY 2014-15

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhaassessment Year: 2014-15

Section 1Section 10Section 115JSection 14A

erroneous plea that the expenditure does not have any connection with the business activities carried out by the appellant.” 3. Ground no.1 - Disallowance under Section 14A of Rs.6,16,295/-. The brief facts of the case are that the assessee company is engaged in the business of manufacturing and selling ... towards administrative expenses incurred for such exempt income. During the course of assessment proceedings, the assessee was asked to provide working of disallowance under Section 14A of the Act read with Rule 8D of the Income Tax Rules. Accordingly, the Assessing Officer disallowed a sum of Rs.6,16,295/-under

Vijay Manubhai Hirpara, Ahmedabad vs. Principal Commissioner of Income Tax, Ahmedabad-3, Ahmedabad

ITA 296/AHD/2022[2015-16]Status: DisposedITAT Ahmedabad30 May 2024AY 2015-16

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyalassessment Year: 2015-16

Section 143(3)Section 14ASection 263

assessment was finalized under Section 143(3) of the Income Tax Act, 1961 at an income of Rs.11,32,760/- after making disallowance under Section 14A of the Act of Rs.1,73,172/-. 4. Thereafter, the PCIT observed on scrutiny of assessment records that the assessee has purchased immovable property

Agrasen Primses Private Limited, Jaipur vs. ITO Ward 5(1), Jaipur

ITA 125/JPR/2023[2014-15]Status: DisposedITAT Jaipur30 May 2024AY 2014-15
For Appellant: Ms. Parba Rana (Adv.)&For Respondent: Shri A.S. Nehra (CIT)
Section 133ASection 142(1)Section 143(2)Section 143(3)

आयकर अपीलीय अधिकरण, जयपुर न्यायपीठ, जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR डा० एस. सीतालक्ष्मी, न्यायिक

Bennett Property Holdings Company Limited, Mumbai vs. Asstt. Commissioner of Income Tax - 1 (1) (1), Mumbai

ITA 247/MUM/2024[2014-15]Status: DisposedITAT Mumbai30 May 2024AY 2014-15

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

Section 14(2)Section 143(3)Section 14ASection 234C

Ltd.v.ACIT (OSD), 84 taxmann.com 244 (Gujarat), the hon'ble high court of Gujarat held that Where Assessing Officer gave detailed reasons for making disallowance under section 14A in respect of exempt dividend income and LTCG earned by assessee discarding assessee's theory that to earn assessable income assessee incurred

ACIT, Circle- 10(2), New Delhi vs. Groz Engineering Tools Pvt. Ltd., New Delhi

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

ITA 2887/DEL/2019[2015-16]Status: DisposedITAT Delhi30 May 2024AY 2015-16

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharmaassessment Year: 2015-16 Acit, Vs Groz Engineering Tools Pvt. Ltd., Circle-10(2), C-717, New Friends Colony, New Delhi. New Delhi. Pan: Aabcg4017H (Appellant) (Respondent) Assessee By : Shri Ved Jain, Advocate & Shri Aman Garg, Ca Revenue By : Shri Amit Katoch, Sr. Dr Date Of Hearing : 27.03.2024 Date Of Pronouncement : 30.05.2024 Order Per Anubhav Sharma, Jm:

For Appellant: Shri Ved Jain, Advocate &For Respondent: Shri Amit Katoch, Sr. DR
Section 143(3)Section 14ASection 40

rule 8D. In this regards, it is submitted by Ld. Counsel, that AO via note sheet dated 23.11.2017 had asked assessee why the disallowance under section 14A read with rule 14A should not be made. In response to above, assessee via reply dated 13.12.2017 (PB Pg 82-85) submitted that ... holding that assessee own funds are adequate enough for making investment capable of earning tax free income. CIT(A) also restricted the disallowance under section 14A r.w.r 8D(iii) to Rs. 5,41,887/- holding that no dividend income is earned by assessee in investment made in 4 equity share

ACIT, Corporate Circle-3(1), Chennai vs. M/S Tvs Motor Company Limited, Chennai

In the result the appeal of the Revenue is dismissed

ITA 6/CHNY/2023[2016-17]Status: DisposedITAT Chennai29 May 2024AY 2016-17

Bench: Shri Mahavir Singh & Shri Amitabh Shuklaआयकर अपील िं./Ita No. 06/Chny/2023 निर्धारण वर्ा /Assessment Year: 2016-17. The Asst. Commissioner Of M/S. Tvs Motor Company Ltd., Income Tax, Vs. Chaitanya, No.12, Corporate Circle-3(1), Khader Nawaz Khan Road, Chennai. Nungambakkam, Chennai – 600 006. [Pan: Aaacs7032B] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलधर्थी की ओर से/ Assessee By : Shri Vikaram Vijayaraghavan, Advocate प्रत्यर्थी की ओर से /Revenue By : Shri A. Sasikumar, Cit ुनवाई की तारीख/Date Of Hearing : 01.05.2024 घोषणा की तारीख /Date Of Pronouncement : 29.05.2024 आदेश / O R D E R

For Appellant: Shri Vikaram VijayaraghavanFor Respondent: Shri A. Sasikumar, CIT
Section 12Section 153(1)Section 250(6)Section 9Section 92C

called for. Disallowance of Rs.5,58,74,455/-, therefore cannot be sustained. Assessee gets relief accordingly. 5.3.2 Regarding the second sum of disallowance under section 14A amounting to Rs.3,00,47,546/-, it is seen that the AO had taken the average value of investment at the beginning ... Jayant Packaging (P) Ltd vs DCIT, Corporate Ward-2(2), Chennai(2021) 128 taxmann.com 2 (Chennai-Trib) decided on 21.04.2021) held that disallowance under section 14A should not be added to the book profit of assesse under section 115JB of the Act. Considering the binding decision, it is held that

Highpoint Properties Pvt. Ltd., Mumbai vs. Assistant Commissioner of Income-Tax Cir. No.1(1)(2), Mumbai

ITA 4830/MUM/2023[2017-2018]Status: DisposedITAT Mumbai29 May 2024AY 2017-2018

Bench: Shri Amit Shukla & Shri Ratnesh Nandan Sahayassessment Year: 2017-18 Highpoint Properties Pvt. Ltd. Assistant Commissioner Of 41-44, Sp Centre, Income -Tax Cir. No. 1(1)(2), Minoo Desai Marg, Room No. 533, Vs. 5Th Floor, Colaba, Mumbai- 400005. Aayakar Bhavan, Maharishi Karve Road, Pan: Aabch6197D Mumbai- 400020. (Appellant) (Respondent) Present For: Assessee By : Shri Rahul Hakani, A.R. Revenue By : Shri P. D. Chougule, Addl. Cit, Sr. D.R. Date Of Hearing : 15 . 05 . 2024 Date Of Pronouncement : 29 . 05 . 2024 O R D E R Per: Ratnesh Nandan Sahay: 1. This Appeal Has Been Filed By The Appellant Against The Order Of The Ld. Cit (Appeals) Passed U/S. 250 Of The Income Tax Act [The „Act‟ In Short] Vide Din & Order No. Itba /Nfac/S/250/2023-24/1057510282(1) Dated 30/10/2023 For The Assessment Year 2017-18. 2 Highpoint Properties Pvt. Ltd.

For Appellant: Shri Rahul Hakani, A.RFor Respondent: Shri P. D. Chougule, Addl. CIT, Sr. D.R
Section 115JSection 143(2)Section 14ASection 250Section 37(1)Section 57

failed to appreciate that other expense of Rs 1,00,836/- may alternatively be allowed as a deduction u/s. 57 of the Act. DISALLOWANCE UNDER SECTION 14A OF THE ACT. 3) The learned Commissioner of Income Tax (Appeals) failed to appreciate that Assessee has suo- moto made disallowance u/s 14A

The Shahabad Coop. Sugar Mills, Shahabad vs. ACIT, Circle, Kurukshetra

ITA 1492/CHANDI/2018[2012-13]Status: DisposedITAT Chandigarh28 May 2024AY 2012-13

Bench: Us In Terms Of Section 253 Of The Income Tax Act, 1961. 2. The Assessee Being Aggrieved By The Order Of Ld. Cit(A) Dt. 11/03/2018 Which Is Hereinafter Referred To As The Impugned Order, Before This Tribunal In Form No. 36 Has Interalia Raised The Following Grounds Of Appeal:

For Appellant: Shri Varun Gupta, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr. DR
Section 14Section 14ASection 253

assessee was in common kitty, as held by this court in CIT Vs. Abhisehk Industries Ltd. (2006) 286 ITR 1 and, therefore, disallowance under section 14A was justified.” Findings of the Hon’ble High Court “We do not find any merit in this submission. The judgment of this court

Quantum Advisors Esop Trust, Mumbai vs. The Income-Tax Officer (Exemptions), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 4548/MUM/2023[2017-18]Status: DisposedITAT Mumbai28 May 2024AY 2017-18

Bench: Shri Prashant Maharishi, Am & Shri Sunil Kumar Singh, Jm The Income-Tax Officer Quantum Advisors Esop Trust (Exemptions) 6Th Floor, Hoechst House The Income-Tax Officer Vs. Nariman Point, (Exemptions), Ward, 2(4), Mumbai-400 021 Piramal Chamber, Lal Baug, Parel, Mumbai-400 012 (Appellant) (Respondent) Pan No. Aaatq0156D

For Appellant: Mr. Ninad A Patade, AR
Section 10(34)Section 143(3)Section 14A

consideration. 1:2 The Appellants submit that considering the facts and circumstances of its case and the law prevailing on the subject, no disallowance under Section 14A of the Income-tax Act, 1961 is called for the Commissioner of Income-tax (Appeals) ought to have held as such ... accordingly. Without prejudice to the foregoing and even otherwise 1:4 The Commissioner of Income-tax (Appeals) has erred in not restricting the disallowance under Section 14A to extent of exempt income of ₹3,00,000/-. 2:0 Re.: General: Quantum Advisors ESOP Trust

Tata International Ltd, Mumbai vs. DCIT RG 14(3)1), Mumbai

In the result, the ground no

ITA 1195/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 May 2024AY 2010-11

Bench: Shri Anikesh Banerjee & Miss Padmavathy S.

For Appellant: Shri Nitesh Joshi a/w Ninad PatadeFor Respondent: Ms. Dhivya Ruth SR.DR
Section 143(3)Section 144C(5)Section 92CSection 92C(2)

leather products, etc. During the impugned assessment year, the transfer pricing adjustment was conducted. The addition was made in different heads like disallowance under section 14A, disallowance of expenditure of interest paid on borrowed capital, and addition of professional charges paid to professionals. The assessee filed an objection ... investment is enclosed by the ld. AR in APB page 125. The statement is reproduced as below: - 15.1. The Ld.AR placed that the disallowance under section 14A was made Rs.1,73,87,000/- during the impugned assessment year. The Ld.AR, in his alternate argument placed that interest expenses of Rs.1298.29

Thrrill Park Limited, Mumbai vs. Commissioner of Income Tax -Appeals, Delhi

ITA 316/MUM/2024[2018-2019]Status: DisposedITAT Mumbai27 May 2024AY 2018-2019
Section 10(35)Section 143(3)Section 14A

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E‘ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI RATNESH NANDAN SAHAY, ACCOUNTANT

Assistant Commissioner of Income Tax, Central Circle-6(4), Mumbai vs. Anant Raj Limited, Delhi

In the result, appeal filed by the revenue is dismissed

ITA 315/MUM/2024[2020-21]Status: DisposedITAT Mumbai22 May 2024AY 2020-21

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Bleacit – Central Circle – 6(4) V. M/S. Anant Raj Limited Room No. 1925, 19Th Floor E-2, Ara Centre Air India Building, Nariman Point Jhandewalan Extention Mumbai – 400021 New Delhi – 110055 Pan: Aabca3972B (Appellant) (Respondent) Assessee Represented By : Shri Sudesh Garg Department Represented By : Shri Mirza Azhar Beig

Section 14ASection 14A(1)

erred in deleting the addition made under section 14A of Income-tax Act, 1961 (in short “Act”) ignoring the clarificatory Explanation of disallowance under section 14A(1) inserted vide the Finance Act, 2022 wherein it has been mentioned that the provisions of section 14A shall apply and shall be deemed

Pradipta Kumar Parida DCIT321, Mumbai vs. Kail Limited, Mumbai

ITA 4669/MUM/2023[2014-15]Status: DisposedITAT Mumbai22 May 2024AY 2014-15
Section 143(3)Section 14A

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E‘ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI RATNESH NANDAN SAHAY, ACCOUNTANT

Indian Oil Corporation Ltd., Mumbai vs. Addl. CIT - 10 (1), Mumbai

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

ITA 6025/MUM/2016[2011-12]Status: DisposedITAT Mumbai22 May 2024AY 2011-12

Bench: Shri Narendra Kumar Billaiya, Hon'Bleand

Section 42(1)(a)Section 80Section 80I

interfere with the findings of the Ld. CIT(A). Ground No. 2 is dismissed. 66. Ground No. 3 relates to deletion of disallowance under section 14A r.w. Rule 8D of I.T. Rules. While scrutinizing the return of income the Assessing Officer found that the assessee in the computation of taxable ... Officer who Page No. 42 ITA NO. 6025 & 5979/MUM/2016 (A. Y: 2011-12) CO NO. 31/MUM/2018 M/s. Indian Oil Corporation Ltd., computed the disallowance under section 14A as per Rule 8D and disallowed %.76 Crores. 67. When the matter was agitated before Ld. CIT(A) the Ld. CIT(A) simply

DCIT - 14(2)(1), Mumbai vs. Indian Oil Corporation Pvt. Ltd., Mumbai

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

ITA 5979/MUM/2016[2011-12]Status: DisposedITAT Mumbai22 May 2024AY 2011-12

Bench: Shri Narendra Kumar Billaiya, Hon'Bleand

Section 42(1)(a)Section 80Section 80I

interfere with the findings of the Ld. CIT(A). Ground No. 2 is dismissed. 66. Ground No. 3 relates to deletion of disallowance under section 14A r.w. Rule 8D of I.T. Rules. While scrutinizing the return of income the Assessing Officer found that the assessee in the computation of taxable ... Officer who Page No. 42 ITA NO. 6025 & 5979/MUM/2016 (A. Y: 2011-12) CO NO. 31/MUM/2018 M/s. Indian Oil Corporation Ltd., computed the disallowance under section 14A as per Rule 8D and disallowed %.76 Crores. 67. When the matter was agitated before Ld. CIT(A) the Ld. CIT(A) simply

Vibha Jain, New Delhi vs. ITO Ward 69(3), New Delhi

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

ITA 760/DEL/2024[2012-13]Status: DisposedITAT Delhi22 May 2024AY 2012-13

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)

Section 142(1)Section 147Section 148

only subsequently that, sometime in October 2010, additional reasons were recorded with regard to the issue pertaining to unabsorbed depreciation and the disallowance under Section 14A of the said Act. In our view, the additional reasons could not have been recorded. The notice under Section 148 would stand or fall