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“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
46
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
44
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
29
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
28
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
26
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
18
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

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

facts and circumstances of the case and in law, no satisfaction was recorded by the Ld AO before invoking notional rule of disallowance u/s 14A read with rule 80. Thus, enhanced addition of Rs 57,51,594 is unsustainable under law and deserves to the quashed. 4. On the facts ... circumstances of the case and in law, both the learned CIT-A and Ld AO has erred in determining the enhanced disallowances u/s 14A of Rs 57,51,594 without ascertaining why disallowance of Rs 9,36,306 u/s 14A made by the assessee is incorrect. 5. That both

R N Sahni, New Delhi vs. ITO, Ward - 32(3), New Delhi

In the result, the appeal filed by the assessee is allowed as per the above directions

ITA 1521/DEL/2019[2012-13]Status: DisposedITAT Delhi24 Jul 2024AY 2012-13

Bench: CIT(A) & again considering the said amount as income from house property resulting into double additions.3. The Id. CIT(A) is wrong in confirming the disallowance of Rs.30985/- out of the total disallowance amounting to Rs.1893103/- u/s 43-B on account of unpaid taxes since the assessee has furnished all the bills/vouchers & copy of Tax Audit Report duly marked.

Section 10Section 143(3)Section 14ASection 43

Assessment Year 2012-13. The assessee has raised following Grounds of appeal: “1.(a) The Id. CIT(A) is wrong in confirming the disallowance u/s 14A of Rs. 15,36,766/- in calculating at 0.5 percent on overall value of investments as per Rule ... appeal before the ITAT. The facts relating to the grounds raised by the assessee are discussed below. 2. With regard to the Disallowance u/s 14A read with Rule 8D(2)(iii) Rs. 15,36,766/- confirmed by the CIT(A) out of the total disallowance

Banwari Lall Pasari, Kolkata vs. ACIT, Cir. 34, Kolkata

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

ITA 679/KOL/2024[2015-16]Status: DisposedITAT Kolkata23 Jul 2024AY 2015-16

Bench: Dr. Manish Boradi.T.A. No.679/Kol/2024 Assessment Year: 2015-16

Section 143(3)Section 14ASection 250Section 80G

present grounds at the time of hearing.” 3. Though the assessee has raised six grounds of appeal but the issues are mainly – (i) Disallowance u/s. 14A read with Rule 8D(2)(ii) of the Income-tax Rules, 1962 (hereinafter referred to as the “Rules”) is at Rs.41 ... Disallowance u/s. 80G of Rs. 1,00,000/-. 4. At the outset, Ld. Counsel for the assessee submitted that disallowance u/s 14A of the Act is uncalled for since the assessee has sufficient own funds to cover up the investment made in Page 2 of 5 I.T.A. No. 679/Kol/2024 Banwari

Shree Capital Services Limited, Kolkata vs. ACIT, Circle - 5(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 641/KOL/2024[2018-19]Status: DisposedITAT Kolkata23 Jul 2024AY 2018-19

Bench: Shri Sanjay Garg & Shri Sanjay Awasthii.T.A. No.641/Kol/2024 Assessment Year: 2018-19 Shree Capital Services Ltd..………..……………………....………....Appellant 21, Strand Road, Kolkata – 700001. [Pan: Aagcs5082D] Vs. Acit, Circle-5(1), Kolkata….................................................…..…..... Respondent Appearances By: Shri Saurav Garg, Ar, Appeared On Behalf Of The Appellant. Shri P. P. Barman, Addl. Cit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : June 20, 2024 Date Of Pronouncing The Order : July 23, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 30.01.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Agitated Against The Confirmation Of Disallowance Of Rs.3,88,57,850/- Made By The Assessing Officer On Account Of Disallowance Of Expenditure Incurred For Earning Of Tax Exempt Income Invoking The Provisions Of Section 14A R.W.R 8D Of The Income Tax Rules. 3. The Assessing Officer Noted That The Assessee During The Year Had Earned Tax Exempt Income Of Rs.58,51,96,313/- Comprising Of Long- Term Capital Gains & Dividend Income. He Further Observed That The

Section 14ASection 250Section 37(1)

Fees etc.) Further, in M/s Agarwal Galvanising Pvt. Ltd. vs. ITO (ITA No. 1401/Kol/2012 dated 18.12.2014), it has been held that no disallowance u/s 14A r.w.r 8D(iii) shall be made in relation to administrative expenditure such as audit fee, salary and bonus, legal fee, office rent, compliance retainership fees ... Rs.4,31,72,884/-, only an amount of Rs.1,74,10,893/- was claimed as allowable expenditure. The total expenditure without any disallowance u/s 14A therefore would amount to Rs.18688509/-, out of which the assessee has already suo moto disallowed a sum of Rs.12,77,616/- incurred towards earning

Bhoomeeth Commosales(P)Ltd, Kolkata vs. ITO, Ward-14(1), Kolkata

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

ITA 977/KOL/2023[2013-14]Status: DisposedITAT Kolkata23 Jul 2024AY 2013-14

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 142(1)Section 143(2)Section 144Section 14A

I.T.A. No.: 977/KOL/2023 Assessment Year: 2013-14 Bhoomeeth Commosales Pvt. Ltd. iii) unexplained borrowings of Rs. 9,89,901/- iv) Disallowance u/s 14A of the Act 9,963/- v) Undisclosed contract receipts of Rs. 80,27,400/- vi) Disallowance of loss of Rs. 43,929/- 1.1. Aggrieved with this action

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Global Limited, Bengaluru

ITA 791/BANG/2024[2018-19]Status: DisposedITAT Bangalore23 Jul 2024AY 2018-19

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Sri C. Ramesh, A.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Global Limited, Bengaluru

In the result, all the COs by assessee in CO

ITA 790/BANG/2024[2017-18]Status: DisposedITAT Bangalore23 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Sri C. Ramesh, A.RFor Respondent: Smt. S, Praveena, D.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue’s appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act”) read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Global Limited, Bengaluru

ITA 789/BANG/2024[2016-17]Status: DisposedITAT Bangalore23 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Sri C. Ramesh, A.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru, Bangalore vs. Coffee Day Global Limited, Bangalore

ITA 788/BANG/2024[2015-16]Status: DisposedITAT Bangalore23 Jul 2024AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Sri C. Ramesh, A.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Global Limited, Bengaluru

ITA 787/BANG/2024[2012-13]Status: DisposedITAT Bangalore23 Jul 2024AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Sri C. Ramesh, A.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short "The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Global Limited, Bengaluru

ITA 786/BANG/2024[2011-12]Status: DisposedITAT Bangalore23 Jul 2024AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Sri C. Ramesh, A.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short "The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Enterprises Limited, Bangalore

In the result, all the COs by assessee in CO

ITA 785/BANG/2024[2020-21]Status: DisposedITAT Bangalore23 Jul 2024AY 2020-21

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Sri C. Ramesh, A.RFor Respondent: Smt. S, Praveena, D.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue’s appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act”) read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Enterprises Limited, Bengaluru

ITA 784/BANG/2024[2018-19]Status: DisposedITAT Bangalore23 Jul 2024AY 2018-19

Bench: Shri Chandra Poojari & Smt. Beena Pillai

Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

Deputy Commissioner of Income-Tax, Bengaluru vs. Coffee Day Enterprises Limited, Bengaluru

In the result, all the COs by assessee in CO

ITA 783/BANG/2024[2017-18]Status: DisposedITAT Bangalore23 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Sri C. Ramesh, A.RFor Respondent: Smt. S, Praveena, D.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue’s appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act”) read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru, Bangalore vs. Coffee Day Enterprises, Bengaluru

In the result, all the COs by assessee in CO

ITA 782/BANG/2024[2016-17]Status: DisposedITAT Bangalore23 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Sri C. Ramesh, A.RFor Respondent: Smt. S, Praveena, D.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue’s appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act”) read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

Deputy Commissioner of Income Tax, Central Circle-1(3), Bengaluru vs. Coffee Day Enterprises Limited, Bengaluru

ITA 781/BANG/2024[2015-16]Status: DisposedITAT Bangalore23 Jul 2024AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Sri C. Ramesh, A.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

DCIT, Central Circle-1(3), Bengaluru vs. Coffee Day Enterprises Limited, Bengaluru

ITA 780/BANG/2024[2011-12]Status: DisposedITAT Bangalore23 Jul 2024AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Sri C. Ramesh, A.R
Section 1Section 132Section 143(3)Section 148Section 14ASection 153ASection 154Section 234B(3)Section 234D

First, we will take up ITA Nos.780 to 785/Bang/2024 (Revenue's appeals). In these appeals, the only issue is with regard to disallowance u/s 14A of the Income Tax Act, 1961 (in short “The Act") read with Rule 8D of the Income Tax Rules. 3. Facts of the case ... Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is right in holding that the disallowance u/s 14A cannot exceed the income claimed as exempt contrary to the provisions of law prescribed? 4. Whether on the facts and circumstances of the case

Imperial Consultants and Securities Limited, Mumbai vs. DCIT, Circle-6(1)(2), Mumbai

In the result, appeal filed by the assessee is treated as allowed

ITA 1071/MUM/2024[2018-19]Status: DisposedITAT Mumbai23 Jul 2024AY 2018-19

Bench: Shri B.R. Baskaran & Shri Sunil Kumar Singh: A.Y : 2018-19

For Appellant: Shri Ganesh Rajagopalan and Shri Kirthivasan RajagopalanFor Respondent: Ms. Madhu Malati Ghosh, CIT-DR
Section 14A

assessee is aggrieved. 6. We heard the parties on this issue and perused the record. The question is whether any disallowance u/s 14A can be made when the assessee has not earned any exempt income. Before us, Ld.AR placed reliance on the decisions rendered in the case of Ajit Ramakant ... Delhi High Court in the case of IL & FS Energy Development company Ltd (supra). Hence the AO was not justified in making disallowance u/s 14A of the Act when the assessee has not earned any exempt income. Accordingly, we set aside the order passed by the Ld.CIT(A) and direct

Mahadev Enclave Pvt. Ltd., Jaipur vs. PCIT(Central), Jaipur

In the result, the appeal of the assessee is allowed

ITA 636/JPR/2024[2019-20]Status: DisposedITAT Jaipur22 Jul 2024AY 2019-20

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. P. C. Parwal, CAFor Respondent: Sh. Anil Dhaka (CIT)
Section 10Section 143(3)Section 14ASection 263

investment. Therefore, in the absence of any proximate relation of borrowed funds with investment in agriculture land, no interest expenditure can be disallowed u/s 14A. In various cases, it has been held that if there are funds available both interest free and borrowed funds, then a presumption would arise that ... Industry Development Board (2019) 262 Taxman 102 (SC) Where High Court upheld Tribunal’s order that in absence of any exempt income, disallowance u/s 14A of any amount was not permissible, SLP filed against said decision was to be dismissed. PCIT Vs. GVK Project & Technical Services Ltd. (2019) 264 Taxman

Maini Materials Movement Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-4(1)(1), Bangalore

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

ITA 1069/BANG/2024[2015-16]Status: DisposedITAT Bangalore22 Jul 2024AY 2015-16

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year : 2015-16

For Appellant: Shri Srinivas K.P, CAFor Respondent: Shri Chinmay Anand Jain, JCIT (DR)
Section 14ASection 14A(1)Section 35(1)(iv)

contended that the assessee has not earned any exempted income in the year under consideration, therefore, there cannot be any disallowance u/s 14A r.w. Rule 8D of Income Tax Rules. 6.1 On the other hand, the ld. DR vehemently supported the order of the authorities below. 7. We have heard