“disallowance u/s 14A”

DisallowancesSection 14ASection 14A2,938 judgments

The decision most relied on for disallowance u/s 14A is CIT v. Corrtech Energy (P.) Ltd. (223 Taxmann 130), cited in 579 judgments on BharatTax.

Leading authorities on disallowance u/s 14A

CIT v. Corrtech Energy (P.) Ltd.

223 Taxmann 130 · 2014 · High Court

579

citing judgments

Disallowance under Section 14A read with Rule 8D is not warranted if the assessee has not earned any exempt income in the relevant assessment year.

CIT v. Gem Plus Jewellery India Ltd.

330 ITR 175 · 2011 · High Court

207

citing judgments

Disallowances made under various sections, such as for PF/ESIC contributions, result in an increase in business profits, and these enhanced profits are eligible for deduction under Sections 10A and 10AA. Similarly, gains from foreign exchange fluctuations directly linked to export sales are also eligible for deduction under Section 10A.

Cargo Motors (P.) Ltd. v. DCIT

145 Taxmann.com 641 · 2022 · High Court

citing judgments

The disallowance under Section 14A read with Rule 8D, particularly Rule 8D(iii) for administrative expenses, should only consider investments that have actually yielded exempt income during the relevant assessment year. Section 14A empowers the Assessing Officer to determine expenditure related to income not forming part of total income.

Sobha Developers Ltd. v. DCIT

125 Taxmann.com 72 · 2021 · High Court

citing judgments

Disallowance under section 14A is a notional disallowance and cannot be added back while computing Book Profits under section 115JB for Minimum Alternate Tax purposes.

Tata Industries Ltd. v. ITO

181 TTJ 600 · 2016 · ITAT

citing judgments

Disallowance under Section 14A cannot exceed the exempt income earned by the assessee. Even if interest expenditure is considered, it cannot be solely attributed to earning exempt dividend income as investors also consider potential capital gains.

PCIT v. J.J. Glastronics (P.) Ltd.

139 Taxmann.com 375 · 2022 · High Court

citing judgments

Additions made under Section 14A of the Income-tax Act, read with Rule 8D, cannot be considered for computing book profit under Section 115JB of the Act.

M/s.Bajaj Allianz General Insurance Co. Ltd. v. ACIT

38 DTR 282 · 2010 · Reported

citing judgments

Section 14A of the Income-tax Act is not applicable to insurance businesses governed by specific provisions of Section 44 and Schedule 1. Profit on sale of investments by insurance companies is not taxable, especially after the deletion of sub-rule (b) of Rule 5 of the First Schedule.

PCIT v. Dipesh Lalchand Shah

143 Taxmann.com 419 · 2022 · High Court

citing judgments

Disallowance under section 14A cannot be made if the assessee has not earned any exempt income in the relevant assessment year. This applies even if the assessee has made investments in shares or has income from a partnership that is negative.

Judgments citing disallowance u/s 14A

DCIT Pondicherry Circle, Pondicherry vs. Ravikumar Distilleries Ltd., Pondicherry

Accordingly. The ground stand partly allowed

ITA 1395/CHNY/2018[2012-13]Status: DisposedITAT Chennai03 Dec 2024AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1.आयकरअपील सं./ Ita No.974/Chny/2018 (िनधा)रणवष) / Assessment Year: 2012-13) M/S. Ravikumar Distilleries Limited Dcit बनाम/ #17, Kamaraj Salai, Pondicherry Circle, Vs. Pondicherry-605 011. Puducherry-605 001. "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabcr-4195-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2.आयकरअपील सं./ Ita No.1395/Chny/2018 (िनधा)रणवष) / Assessment Year: 2012-13) Dcit M/S. Ravikumar Distilleries Limited बनाम Pondicherry Circle, # C-9 & C-10, Industrial Estate, / Vs. Puducherry-605 001. Thattanchavady, Pondicherry-605 009. "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aabcr-4195-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Assessee By : Shri N. Arjun Raj (Advocate) - Ld.Ar " थ"कीओरसे/Revenue By : Shri A.Sasikumar (Cit) - Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 21-11-2024 घोषणाकीतारीख /Date Of Pronouncement : 03-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal ()

For Appellant: Shri N. Arjun Raj (Advocate) - ld.ARFor Respondent: Shri A.Sasikumar (CIT) - Ld. Sr. DR

Section 143(3)Section 14ASection 194JSection 36(1)(iii)Section 40Section 69

evident, the subject matter of assessee’s appeal is – (i) Disallowance u/s 40(a)(ia); (ii) Addition of reconciliation difference u/s 69; (iii) Disallowance u/s 14A. The subject matter of revenue’s appeal is – (i) Disallowance u/s 36(1)(iii); (ii) Addition of reconciliation difference u/s ... been established. Therefore, the adjudication of Ld. CIT(A) find our concurrence. The corresponding grounds raised by the revenue stand dismissed. 6. Disallowance u/s 14A 6.1 The assessee made investment in shares of Liquors India Ltd. and M/s S.V. Distilleries Ltd. but did not offer any disallowance u/s 14A

Bse Limited, Fort, Mumbai vs. DCIT Circle 2(1)(1), Aaykar Bhavan

In the result, assessee’s appeal ITA No

ITA 2662/MUM/2024[2018-19]Status: DisposedITAT Mumbai02 Dec 2024AY 2018-19

Bench: SMT MS. PADMAVATHY S (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)

Section 115JSection 143(2)Section 14ASection 201Section 250Section 37(1)

income scientifically. b) Whether on the facts of the case and in law, the Learned CIT(A), NFAC was justified in confirming the disallowance u/s 14A r.w.r. 8D made by the Id. A.O. at NaFAC without giving regard to the accounts of the appellants, without arriving at satisfaction ... Rules, 1962 needs to be applied for working out the quantum of disallowance u/s.14A of the Income Tax Act, 1961. The working of disallowance u/s. 14A r/w rule 8D is as under………..” 11. The aforesaid observations of learned assessing officer were treated by learned

ACIT-2(1)(1), Mumbai vs. Bse Ltd, Mumbai

In the result, assessee’s appeal ITA No

ITA 2440/MUM/2024[2018-19]Status: DisposedITAT Mumbai02 Dec 2024AY 2018-19

Bench: SMT MS. PADMAVATHY S (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)

Section 115JSection 143(2)Section 14ASection 201Section 250Section 37(1)

Vedant Fashions Ltd., Kolkata vs. DCIT, Cir. 3(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 530/KOL/2024[2020-21]Status: DisposedITAT Kolkata29 Nov 2024AY 2020-21

Bench: Shri Sonjoy Sarma & Shri Rajesh Kumari.T.A. No.530/Kol/2024 Assessment Year: 2020-21 Vedant Fashions Ltd...………………........………………....Appellant Sdf-1, A-501, A-502, 4Th Floor, 19 Canal South Road, Paridhan Garment Park, Kolkata – 700015. [Pan: Aabcv4646B] Vs. Dcit, Circle-3(2), Kolkata.….…….…............................…..…..... Respondent Appearances By: Shri Sunil Surana, Fca, Appeared On Behalf Of The Assessee. Shri Pradip Kr. Biswas, Addl. Cit, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : November 18, 2024 Date Of Pronouncing The Order : November 29, 2024 आदेश / Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 30.01.2024 Of The Commissioner Of Income Tax (Appeals)- 21, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income Declaring A Total Income Of Rs.3084417870/-. The Case Of The Assessee Was Selected For Scrutiny By Issuing Notice U/S 143(2) Under Cass, Consequent To This, Notices U/S 142(1) & 133(6) Of The Act Were Issued To The Assessee Seeking Clarification & Verification Of The Deduction Claimed In The Return. During The Assessment Proceedings, The Assessing Officer Observed That The Assessee Had Claimed A Deduction Of Rs.2,98,57,165/- Towards Health & Education Cess. The Assessing Officer Disallowed This Deduction Holding That The Health And

Section 142(1)Section 143(2)Section 14ASection 14A(2)Section 250Section 40

made by the Assessing Officer. Hence, the ld. CIT(A) sustained the addition made by the Assessing Officer. However, in respect of disallowance u/s 14A, the ld. CIT(A) acknowledged a computational error and directed the Assessing Officer to rectify the disallowance to Rs.67,90,605/- ,however, the disallowance

Dsp Hmk Holdings Pvt Ltd, Mumbai vs. Dy .CIT Circle 2(1)(2), Mumbai

In the result the appeal filed by the assessee stands allowed

ITA 4046/MUM/2024[2017-18]Status: DisposedITAT Mumbai29 Nov 2024AY 2017-18

Bench: Smt. Beena Pillai & Shri Prabhash Shankarassessment Year: 2017-18 Dsp Hmk Holdings Pvt. Dy. Cit- Circle 2(1)(2) Ltd. Aayakar Bhavan, 11Th Floor, M. K. Marg, Mafatlal Centre, Vs. Mumbai- 400020. Nariman Point, Mumbai- 400021. Pan: Aaach1037K Appellant : Respondent

For Appellant: RespondentFor Respondent: Shri R. R. Makwana, Sr. D.R

Section 115JSection 14ASection 14A(2)

above, the learned Commissioner of Income Tax (Appeals) has failed to consider that the appellant had disallowed Rs.10,66,18,963/- (excluding disallowance u/s 14A Rs.4,53,034/-) in its computation of income and has overlooked and erroneously upheld the order of the Assessing Officer in further disallowing Rs.9 ... Rs.9,79,36,392/- under section 14A read with Rule 8D be deleted.  without prejudice to what is stated above, that the disallowance u/s 14A applies only to section 14A and not to section 115JB and be deleted to modify the assessment in accordance with the provisions of law.” Brief

Millennium Appliances India Ltd, Mumbai vs. ITO RG 3(2)(4), Mumbai

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

ITA 3289/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Nov 2024AY 2009-10

Bench: Smt. Beena Pillai & Smt. Renu Jauhrim/S. Millennium V/S. Ito, Range 3(2)(4), Appliances India Ltd. बनाम Mumbai 171-C, Mittal Court, Aayakar Bhavan, Nariman Point, Mumbai-400020 Mumbai-400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaccm7838D Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Shri Madhur Agarwal &For Respondent: Shri Kailash C. Kanojiya

Section 115JSection 143(1)Section 143(3)Section 14ASection 14A(2)Section 250

response to the show cause notice issued by the AO, asking the assessee to explain as to why disallowance u/s 14A should not be made out of interest income, the assessee submitted that it had not received any income which was exempt. However, the AO proceeded to calculate disallowance u/s ... treating as unascertained liability was correct. 5. We have heard the rival submissions. Ground No. 1 and 2 relate to disallowance u/s 14A r.w. Rule 8D and adjustment to the book profits u/s 115JB on that account. Ld. AR has submitted that there was no exempt income earned

Deputy Commissioner of Income Tax, Central Circle-3, Jaipur vs. Naresh Kumar Gupta, Sriganganagar

In the results the appeal of the revenue stands dismissed and the

ITA 458/JPR/2024[2014-15]Status: DisposedITAT Jaipur28 Nov 2024AY 2014-15

Bench: Him The Order Passed Under Section 143(3) Of The Income Tax Act, [ For Short “Act” ] By The Acit, Circle, Sri Ganganagar [

For Appellant: Shri P.C. Parwal (C.A.)For Respondent: Ms. Alka Gautam (CIT) (V.H.)

Section 143(3)Section 14ASection 36(1)(iii)

Accordingly, the AO, by applying the provisions of section 14A, made disallowance of Rs.Rs.2,87,229/-. The appellant has stated that the disallowance u/s 14A is attracted only when exempt income is earned. During the year the assessee has not earned any exempt income from these land or residential ... Trib.) and Doha Bank QSC Vs. DCIT (2021) 187 ITD 125 (Mum.) (Trib.) in this regard. Considering the above discussion, the disallowance u/s 14A is to be worked after netting of interest and the disallowance calculation would be much lesser in the present case. Further in the case of Principal

Akshay Anil Jain, Mumbai vs. ITO, Ward, 23(1)(6), Mumbai

In the result, the appeal of the assessee is allowed

ITA 4021/MUM/2024[2020-21]Status: DisposedITAT Mumbai28 Nov 2024AY 2020-21

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhailassessment Year: 2020-21

For Appellant: Shri Prakash JotwaniFor Respondent: Shri Ram Krishna Kedia, Sr. DR

Section 10Section 143(3)Section 14A

erred in holding that whether interest income is earned on current account or capital account is the same and disallowance u/s 14A is applicable towards interest earned on current account too.” 2. Fact in brief is that return of income declaring total income of Rs. 83,86,110/- was filed ... held that where assessee’s own funds and other non-interest bearing funds were more than the investment in tax free securities no disallowance u/s 14A can be made. 7. The ld. Counsel also referred the decision of the ITAT Mumbai in the case of ACIT vs Ankit Arunbhai Shah

Isha Properties Pvt. Ltd., New Delhi vs. PCIT (Central), Delhi

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

ITA 2452/DEL/2024[2018-19]Status: DisposedITAT Delhi28 Nov 2024AY 2018-19

Bench: Shri Mahavir Singh & Shri Naveen Chandra

For Appellant: Shri Rakesh Joshi, CAFor Respondent: Shri Dayainder Singh Sidhu, CIT-DR

Section 139(1)Section 143(3)Section 14ASection 263

earn any exempt income from tax. Since there is no exempt income earned by the assessee during the year, there cannot be any disallowance u/s 14A r.w.r 8D. We find that the PCIT has invoked the provisions of section 263 on account of the decision of Delhi High Court ... view of SLP being admitted in Supreme Court on this issue, it was incumbent upon the assessing officer to make the requisite disallowance u/s 14A of I.T. Act.” 16. Considering the fact that the Delhi High Court has held the explanation to section 14A to be applicable from

DCIT-CC-4(2), Mumbai vs. Shahrukh Khan, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 490/MUM/2024[2012-13]Status: DisposedITAT Mumbai27 Nov 2024AY 2012-13

Bench: Shri B R Baskaran & Shri Raj Kumar Chauhan

Section 143(2)Section 14ASection 250Section 271(1)(c)

scrutiny under CASS and the notice u/s 143(2) of the Act was issued. The AO vide assessment order dated 16.03.2015 made disallowance u/s 14A r.w.r. 8D for a sum of Rs. 36,89,168/- and further an addition was made on account of notional rental income from Dubai Palm ... Vide order dated 30.03.2018 passed u/s 271(1)(c) of the Act, the AO did not levy any penalty on account of disallowance u/s 14A of the Act, however he proceeded to impose the penalty on the concealment of notional income at Rs. 39,48,133/- from Signature Villa

Windston Spring Pvt Ltd, Mumbai vs. Dy. Commissioner of Income Tax 8 (3)(2), Mumbai

In the result, the appeal filed by the Assessee stands allowed for statistical purposes

ITA 3204/MUM/2024[2012-2013]Status: DisposedITAT Mumbai27 Nov 2024AY 2012-2013

Bench: Shri Narender Kumar Choudhry & Smt Renu Jauhriassessment Year: 2012-13

For Appellant: Shri Rahul Hakani, Ld. A.RFor Respondent: Shri Swapnil Sawant, Ld. SR. A.R

Section 143(3)Section 148Section 14ASection 250

account of loss on sale of investment. 4. The Assessee being aggrieved, challenged the addition of Rs.18,10,389/- on account of disallowance u/s 14A r.w.rule 8D of the Income Tax Rules, 1962 (in short the Rules), however, failed to participate in the appellate proceedings before the Ld. Commissioner. Therefore

Advance India Projects Limited, Gurgaon vs. Pr, CIT Central Delhi-1, Delhi

In the result, appeal filed by the assessee is allowed

ITA 2527/DEL/2024[2018-19]Status: DisposedITAT Delhi26 Nov 2024AY 2018-19

Bench: Shri S.Rifaur Rahman & Shri Sudhir Pareekadvance India Projects Limited, Vs. Pr.Cit, Aipl Business Club, Fifth Floor, Central Delhi 1, Golf Course Extension Road, Sector 62, Delhi. Gurgaon – 122 001 (Haryana). (Pan : Aacca9859J) (Appellant) (Respondent) Assessee By : Shri Salil Agarwal, Sr. Advocate Shri Shailesh Gupta, Advocate Revenue By : Shri Kanv Bali, Sr. Dr Date Of Hearing : 24.09.2024 Date Of Order : 26.11.2024 O R D E R Per S.Rifaur Rahman,Am: 1. This Appeal Is Filed By The Assessee Against The Order Of Ld. Pr. Commissioner Of Income-Tax (Pcit), Delhi-1 (Hereinafter Referred To 'Ld. Pcit) Dated 28.03.2024 For Assessment Year 2018-19. 2. The Brief Facts Of The Case Are, The Assessee Had Filed Its Return Of Income For Assessment Year 2018–19 On 30.11.2018 Declaring Total Income Of Rs.14,85,19,440/–. The Assessment Was Completed Under Section 143(3) R.W.S 143(3A) & 143(3B) On 09.04.2021 At An Income Of Rs.14,85,39,600/–.

For Appellant: Shri Salil Agarwal, Sr. AdvocateFor Respondent: Shri Kanv Bali, Sr. DR

Section 143(3)Section 14ASection 263

PCIT, Delhi-1 examined the assessment records and observed that the assessee has invested in non-current investments and had not made any disallowance u/s 14A of the Act even though the assessee had made substantial investments in shares for the purpose of earning dividend and other income which

Candor Gurgaon One Realty Projects Pvt. Ltd. (Formerly Known As Unitech Realty Projects Pvt. Ltd.), Mumbai vs. DCIT Circle- 18(1), New Delhi

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

ITA 6399/DEL/2019[2011-12]Status: DisposedITAT Delhi26 Nov 2024AY 2011-12

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri K.M. Gupta, AdvFor Respondent: Shri Krishana Ramavat, Sr. DR

Section 14ASection 271(1)(c)

counsel for the assessee. The same is dismissed as not pressed. 5. Ground No. 1.1 and 1.2 is with regard to disallowance u/s 14A r.w.r 18D of the Rules. 6. Briefly stated, the assessee is in the business of Real Estate Development and has developed a SEZ in Gurgaon. During ... find from the perusal of the assessment order that the Assessing Officer has not recorded satisfaction as to how the assessee’s voluntary disallowance u/s 14A is incorrect or wrong, with respect to the examination of the books of account. There is not even a whisper of examination of books