“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 Central Circle 5 4, Mumbai vs. Sapphire Land Development Pvt Ltd, Mumbai

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

ITA 299/MUM/2024[2010-11]Status: DisposedITAT Mumbai18 Jun 2024AY 2010-11

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhailassessment Year : 2010-11 Dcit Central Circle 5 4,Mumbai Room No.1927, 19Th Floor, Air India Building, Nariman Point, Mumbai – 400 021 ---- Appellant Vs. Saphire Land Development Pvt. Ltd. R.No.5, Capri, 3Rd Floor, Anant Kanekar Marg, Bandra East, Mumbai – 400 051 Pan: Aaacs-7785-H --- Respondent Assessee By : None Revenue By : Shri Surendra Meena Date Of Hearing : 12/06/2024 Date Of Pronouncement : 18/06/2024

For Appellant: NoneFor Respondent: Shri Surendra Meena

Section 115JSection 148Section 14A

earned exempt dividend 2 Assessment Year : 2010-11 income of Rs.60.35 lakhs + Rs.1.72 lakhs totaling to Rs.62.07 lakhs, but did not make any disallowance u/s 14A of the Act. Hence the AO computed the disallowance u/s 14A of the Act under Rule 8D at Rs.2.70 crores, which consisted of direct ... Infrastructure (India) Ltd (ITA No.204/2022 & CM APPL. 31445/2022 dated 20-07-2022). Accordingly, the Ld CIT(A) directed the AO to restrict the disallowance u/s 14A of the Act to the extent of exempt income of Rs.62.07 lakhs. 5. Since the Ld CIT(A) has followed the decision rendered

Zodiac Ventures Ltd, Mumbai vs. Income Tax Officer Ward 1(3)(4), Mumbai

In the result, appeal filed by the assessee is allowed in the above terms

ITA 4754/MUM/2023[2016-17]Status: DisposedITAT Mumbai18 Jun 2024AY 2016-17

Bench: Ms. Padmavathy S & Shri. Raj Kumar Chauhanzodiac Ventures Ltd. Vs. Income Tax Officer Ward 404, Dev Plaza, 68, S.V. Road, 11(3)(4) Andheri West, Mumbai – Aayakar Bhawan, Maharshi 400058. Karve Road, Mumbai- Pan: Aafps7328J 400020. (Appellant) (Respondent)

Section 14ASection 250

erred in upholding the addition of Rs. 50,81,159 made by the Assessing Officer by way of disallowance u/s. 14A read with Rule 8D. 2. That, without prejudice to the generality of ground of appeal no. 1, Ld. CIT(A) erred in: - a) Not appreciating that the petitioner ... made investment in equity shares. Therefore, not satisfied with the reply of the appellant the AO calculated Rs 50,81,159/- as disallowance u/s 14A and added back the same to the income of the appellant. During the course of appellate proceedings the appellant has stated is a public limited

Urmin Products Pvt. Ltd., Ahmedabad vs. The Dy.CIT, Central Circle-1(3), Ahmedabad

In the result, the appeal filed by the assessee bearing ITA

ITA 1007/AHD/2023[2020-21]Status: DisposedITAT Ahmedabad14 Jun 2024AY 2020-21

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri V.K. Mangla, Sr. DR

Section 143(3)Section 14ASection 14A(2)

short), relating to the Assessment Years (AYs) 2018-19 and 2020-21 respectively. 2. Since common issue of disallowance u/s 14A of the Act read with Rule 8D of Income-tax Rules, 1962 is involved in both the cases, these appeals were heard together and are being disposed ... refund claim, (ii) Duty Drawback and (iii) expenses incurred for earning exempt income, and thereafter the assessment was completed by making a disallowance u/s 14A r.w.r. 8D of Rs.83,35,408/-. 4. Aggrieved against the assessment order, the assessee filed an appeal before the ld. CIT(A). The assessee submitted

Urmin Products Pvt. Ltd., Ahmedabad vs. The Dy.CIT, Central Circle-1(3), Ahmedabad

In the result, the appeal filed by the assessee bearing ITA

ITA 1006/AHD/2023[2018-19]Status: DisposedITAT Ahmedabad14 Jun 2024AY 2018-19

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha

For Appellant: Shri Aseem L. Thakkar, ARFor Respondent: Shri V.K. Mangla, Sr. DR

Section 143(3)Section 14ASection 14A(2)

The ITO, Ward-3(1)(1), Ahmedabad vs. M/S Poggen Amp Nagarsheth Powertronics Pvt. Ltd., Ahmedabad

The appeal of the Revenue is dismissed

ITA 237/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad13 Jun 2024AY 2013-14

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar, Accountnat Member Assessment Year : 2013-14 The Income Tax Officer M/S.Poggen Amp Nagarsheth Ward-3(1)(1) Vs Powertronics Pvt.Ltd. Ahmedabad C-1/B, 4402, Gidc Estage Phase-Iv, Vatva Ahmedabad – 382 445, Gujarat Pan: Aaacp 9130 B अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Tushar Hemani, Sr. Adv. & Shri Parimalsinh B. Parmar, Ar Revenue By : Shri Sudhendu Das, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 10/06/2024 घोषणा क" तार"ख /Date Of Pronouncement: 13/06/2024 आदेश/O R D E R

For Appellant: Shri Tushar Hemani, Sr. Adv. &For Respondent: Shri Sudhendu Das, CIT-DR

Section 143(1)Section 143(3)Section 14A

completed the assessment making an addition of Rs.15,10,05,722/- The addition was made on account of under valuation of closing stock, disallowance u/s 14A of the Act, disallowance in respect of ESI, disallowance on account of interest on unpaid purchase price and disallowance towards insurance expenses. 3. Aggrieved ... deleted the disallowance agreeing to the contention of the assessee. He reiterated that in assessee’s own case for AY 2012-13, disallowance u/s 14A of the Act was deleted after following the same decision of Corrtech Energy Ltd. (Supra). This decision of Ld.CIT(A) was upheld

DCIT Circle-52(1), New Delhi vs. Oil Industry Development Board, New Delhi

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

ITA 1847/DEL/2023[2014-15]Status: HeardITAT Delhi13 Jun 2024AY 2014-15

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: NoneFor Respondent: Shri Subhra Jyoti Chakraborty, Sr. DR

Section 14ASection 36(1)(xii)

functions under the administrative control of Ministry of Petroleum and Natural Gas. 6. Briefly, there are two issued involved – One is regarding disallowance u/s 14A and the other regarding deduction u/s 36(1)(xii) of the Act. With respect to the issue of disallowance u/s 14A

N. K. Proteins Ltd., Ahmedabad vs. The Assistant Commissioner of Income Tax, Circle-3(1)(1), Ahmedabad

ITA 313/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad12 Jun 2024AY 2017-18

Bench: Or During The Course Of Hearing Of The Appeal.”

For Appellant: Shri Vartik Choksi, A.RFor Respondent: Shri Ketan Gajjar, CIT-D.R

Section 115JSection 14ASection 250

observed that appellant has not made any disallowance of expenses u/s 14A of the Act hence he applied Rule 8D and made disallowance u/s. 14A of the Act at Rs 9,60,100/-. On the other hand, the assessee claimed that as against interest expenses of Rs.45 ... purpose of apportionment of expenditure relatable to exempt income. However, the Id. CIT(A) accepted the contention of the assessee that the disallowance u/s 14A cannot exceed the exempt income earned during the year relying upon the decision of the Delhi High Court in the case of PCIT vs. Moderate

M/S Rockbed Renovators Ltd., Bhopal vs. The PCIT-1, Bhopal

In the result, the appeal of the assessee is allowed

ITA 214/IND/2023[2018-19]Status: HeardITAT Indore12 Jun 2024AY 2018-19

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanirockbed Renovators Ltd. Pr. Cit-1 7-A, Panjabi Bagh Raisen Road Bhopal Govindpura Vs. Bhopal (Appellant / Assessee) (Respondent/ Revenue) Pan: Aaacr7151G Assessee By Shri Gagan Tiwari Ar Revenue By Ms. Ila Parmar, Cit- Dr Date Of Hearing 10.06.2024 Date Of Pronouncement 12.06.2024

Section 143(3)Section 196CSection 263

even issued a second show cause notice dated 22.12.2019 asking the details regarding unsecured loans along with explanation in respect of disallowance u/s 14A r.w. Rule 8D. Finally the AO has made disallowance only u/s 14A and no disallowance or addition was made in respect of the other issues

Bhootnath Vintrade Pvt. Ltd., Delhi vs. ITO, Ward-12(3), Kolkata

In the result, the appeal of the assessee is allowed

ITA 189/KOL/2024[2009-10]Status: DisposedITAT Kolkata11 Jun 2024AY 2009-10

Bench: Dr. Manish Borad & Shri Sonjoy Sarma]

Section 147Section 148Section 14ASection 151Section 234Section 250Section 68

circumstance of the case Ld. Commissioner of Income Tax Appeals erred in upholding and confirming the addition of Rs.11,990 on account of disallowance u/s 14A of the Income Tax Act, 1961 read with rule 8D of the Income Tax Rules, 1962. The addition is not called for hence

ACIT-14(1)(2), Mumbai vs. Vidarbha Industries Power Limited, Mumbai

In the result, the appeal filed by the assessee is allowed and the appeal of the revenue is dismissed

ITA 1491/MUM/2024[2016-17]Status: DisposedITAT Mumbai10 Jun 2024AY 2016-17

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhailassessment Year :2016-17 Vidarbha Industries Power Ltd. Reliance Centre, Ground Floor, 19 Walchand Hirachand Marg, Ballard Estate, Mumbai – 400 001 Pan:Aadcr-1892-D ---- Appellant Vs. Deputy Commissioner Of Income Tax, Circle 14(1)(2) Mumbai. [Erstwhile Dy. Commissioner Of Income Tax Cir.14(3)(1)] Room No.455, 4Th Floor, Aaykar Bhavan, M.K. Road, Mumbai 400 020 --- Respondent Assessment Year :2016-17 Acit-14(1)(2), Mumbai. Room No.455, 4Th Floor, Aaykar Bhavan, M.K. Road, Mumbai – 400 020 …. Appellant Vs. Vidarbha Industries Power Ltd. H-Block, First Floor, Dhirubhai Ambani Knowledge City, Thane Belapur Road, Koperkhairane, Navi Mumbai 400 710. …. Respondent

For Appellant: Shri Amit KhatiwalaFor Respondent: Shri Surendra Meena, Sr.DR

Section 115JSection 14A

sale of power/electricity. The Assessing Officer noticed that the assessee has earned exempt dividend income of Rs.1.09 crores, but did not make any disallowance u/s. 14A of the Act. Accordingly, the Assessing Officer computed the disallowance u/s. 14A of the Act as per Rule 8D consisting of interest disallowance u/r.8D ... book profit u/s. 115JB of the Act. 3. In the appellate proceedings, the ld.CIT(A)directed the Assessing Officer to restrict the disallowance u/s. 14A of the Act to the amount of exempt income earned by the assessee. Accordingly, the disallowance u/s. 14A of the Act was directed

Vidarbha Industries Power Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 14(1)(2), Mumbai

In the result, the appeal filed by the assessee is allowed and the appeal of the revenue is dismissed

ITA 1419/MUM/2024[2016-17]Status: DisposedITAT Mumbai10 Jun 2024AY 2016-17

For Appellant: Shri Amit KhatiwalaFor Respondent: Shri Surendra Meena, Sr.DR

Section 115JSection 14A

C.M.D. Ratnakar Dy. Commissioner of Income Tax, Circle 2(1), Hyderabad vs. Jasper Industries Private Limited, Hyderabad

In the result, the appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 6/HYD/2021[2016-17`]Status: DisposedITAT Hyderabad05 Jun 2024

Bench: Shri Laliet Kumar, Hon'Ble & Shri Manjunatha G., Hon'Bleधििाारण वर्ा आ.अपी.सं अपीलार्थी / प्रत्‍यर्थी / / A.Y. Appellant Respondent / Ita No. M/S. Jasper Asst. Commissioner Industries Private Of Income Tax, Limited, 781/Hyd/2020 2016-17 Circle-2(1), Hyderabad Hyderabad [Pan: Aaacj5760H] M/S. Jasper Dy. Commissioner Industries Private Of Income Tax, 6/Hyd/2021 2016-17 Limited, Circle-2(1), Hyderabad Hyderabad [Pan: Aaacj5760H]

For Appellant: Shri C.S. Subrahmanyam and Shri EV Sri Krishna, ARsFor Respondent: Shri K. Meghnath Chowhan, CIT-DR

Section 14A

following grounds: “1. The Ld. CIT(A) erred in allowing the appeal in part. 2. (a) The Ld.CIT(A) erred in holding that disallowance u/s. 14A of the Act is called for in the appellant’s case and erred in directing the Assessing Officer to make a disallowance of Rs.1 ... extent of dividend income. (b) The Ld.CIT(A) erred ought to have appreciated that the Assessing Officer has not made any disallowance u/s 14A of the Act, in the assessment under consideration. (c) The Ld. CIT(A) ought to have appreciated that the disallowance of Rs.1,22,85,858/- made

Jasper Industries Private Limited, Hyderabad vs. Assistant Commissioner of Income Tax, Circle -2(1), Hyderabad

In the result, the appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 781/HYD/2020[2016-17]Status: DisposedITAT Hyderabad05 Jun 2024AY 2016-17

For Appellant: Shri C.S. Subrahmanyam and Shri EV Sri Krishna, ARsFor Respondent: Shri K. Meghnath Chowhan, CIT-DR

Section 14A

Rishra Investments Ltd., Kolkata vs. I.T.O., Ward-1(4), Kolkata

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 496/KOL/2022[2013-2014]Status: DisposedITAT Kolkata05 Jun 2024AY 2013-2014

Bench: Dr. Manish Borad & Pradip Kumar Choubey

Section 115JSection 143(2)Section 143(3)Section 14ASection 250Section 254(2)

taxable total income. Ld. Counsel for the assessee further, submits that in the assessment order ld. AO computed the expenditure to be disallowed u/s 14A of the Act by taking the total value of the investment in shares, i.e. against the law and also against the proposition ... also placed the details of investment and dividend has been received in its paperbook. He has also given a chart of disallowance u/s 14A of the Act read with Rule 8D of the Rules in the light of the decision of the Hon'ble ITAT and the High Court

Ajay Enterprises P.Ltd, New Delhi vs. DCIT, Central Circle-1, New Delhi

In the result, the appeal is partly allowed

ITA 1782/DEL/2022[2017-18]Status: DisposedITAT Delhi05 Jun 2024AY 2017-18

Bench: Shri G.S. Pannu, Vice- & Shri Anubhav Sharmaassessment Year: 2017-18

Section 143(1)Section 14ASection 40Section 40ASection 43B

u/s. 43B of the Income-Tax Act out of the amounts provided towards the unfinished work. 5. That the upholding the disallowance u/s 14A amounting to Rs.47,63,951/- is bad in law in view of the fact that there was no exempt income in the year under consideration

Deputy Commissioner of Income Tax Central Circle 1(1), Ahmedabad vs. Astral Limited, Ahmedabad

In the result, ground number 2 of the Department’s appeal is dismissed

ITA 921/AHD/2023[2018-19]Status: DisposedITAT Ahmedabad04 Jun 2024AY 2018-19

Bench: The First Appellate Authority Which Has Been Decided By The Ld. Cit(A) Vide The Impugned Order. The Revenue Is In Appeal Us Before Us.

For Appellant: Shri Vartik Choksi, A.RFor Respondent: Shri Pratik Sharma, Sr. D.R

Section 143(3)Section 144C(3)Section 14ASection 92C

assessment, the Assessing Officer (AO) had made the following additions: - TP Adjustment 26,32,930 Disallowance of ESOP expenses 1,50,21,000 Disallowance u/s 14A r.w. rule 8D 3,52,52,300 3. Aggrieved with the order, the assessee had filed an appeal before the first appellate authority which ... circumstances of the case Ld. CIT(A) erred in directing to delete the addition of Rs 3,52,52,300 on account of disallowance u/s 14A relied upon decision of Jurisdictional Ahmedabad, ITAT ITA No 287/Ahd/2020 dated 25.01.2023 in appellant’s own case. The reason of Hon’ble ITAT

DCIT-2(3)(1), Mumbai vs. Navin Fluorine International Ltd, Mumbai

In the result, the appeal of the Revenue is allowed partly for In the result, the appeal of the Revenue is allowed partly for In the result, the appeal of the Revenue is allowed partly for statisti...

ITA 9/MUM/2024[2016-17]Status: DisposedITAT Mumbai04 Jun 2024AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2016-17

For Appellant: Ms. Arati VissanjiFor Respondent: 30/05/2024

Section 14A

right in presuming investments are made out of own funds for the purpose of calculations of disallowance u/s. 14A funds for the purpose of calculations of disallowance u/s. 14A funds for the purpose of calculations of disallowance u/s. 14A r.w.Rule 8d(2)(fi) when the issue of mixed funds ... case and in law, the nce of the case and in law, the Ld. CIT(A) was justified in holding that disallowance u/s. 14A is to Ld. CIT(A) was justified in holding that disallowance u/s. 14A is to Ld. CIT(A) was justified in holding that disallowance u/s. 14A

ITO Ward 27(2), New Delhi vs. Urban Land Management Pvt. Ltd., New Delhi

The appeal of the Revenue is dismissed

ITA 5815/DEL/2019[2016-17]Status: DisposedITAT Delhi04 Jun 2024AY 2016-17

Bench: Shri G.S. Pannu & Shri Anubhav Sharmaassessment Year: 2016-17 Income-Tax Officer, Vs M/S Urban Land Management Ward-27(2), New Delhi. Pvt. Ltd., 22, Dda Flats, Shivalik Road, Malviya Nagar, New Delhi-110017. Pan: Aabcu4986D (Appellant) (Respondent) Assessee By : Dr. Rakesh Gupta, Adv.; S/Shri Shrey Jain, Deepesh Garg & Somil Agarwal, Advocates Department By : Ms. Sapna Bhatia, Cit(Dr) & Shri Amit Katoch, Sr. Dr Date Of Hearing : 05.04.2024 Date Of Pronouncement : 04.06.2024 O R D E R Per Anubhav Sharma, Jm: The Revenue Has Come In Appeal Against The Order Dated 08.04.2019, For The Assessment Year 2016-17, Passed By The Commissioner Of Income Tax (Appeals)- 9, New Delhi (Hereinafter Referred As “Learned First Appellate Authority” Or In Short “Faa”), In Appeal No. 10326/18-19, Arising Out Of Assessment Order Dated

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Sapna Bhatia, CIT(DR) &

Section 143(1)Section 143(3)Section 14A

complete scrutiny under CASS and relevant notices u/s 143(1) and 142(1) were issued. The AO questioned the assessee as to why disallowance u/s 14A read with Rule 8D as made in A.Y. 2015- 16 be not applied to the present assessment year, for which assessee had claimed that

Ganpati Industrieal Pvt. Ltd., Kolkata vs. DCIT, Cen. Cir. 4(2), Kolkata

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

ITA 301/KOL/2024[2018-19]Status: DisposedITAT Kolkata03 Jun 2024AY 2018-19

Bench: Shri Rajpal Yadav, Hon’Ble & Dr. Manish Borad, Hon’Ble

For Appellant: Shri Ramesh Kumar Patodia, AdvocateFor Respondent: Shri Manas Mondal, Addl. CIT, Sr. D/R

Section 143(2)Section 14ASection 250Section 36(1)(va)Section 43B

hereby confirmed and the Ground No. 6 raised by the assessee is dismissed. 3. The next issue for our consideration is against the disallowance u/s 14A of the Act at Rs.28,45,042/-. Facts in brief relating to this issue are that the assessee is a private limited company ... stated that the average monthly investment which have given rise to the exempt income, should only be considered for computing the disallowance u/s 14A of the Act. Referring to page 62 of the paper book, he submitted that the ld. Assessing Officer has taken those investments also which have

Emerald Company Pvt. Ltd., Kolkata vs. DCIT, Cir. 8(1), Kolkata

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

ITA 252/KOL/2024[2015-16]Status: DisposedITAT Kolkata03 Jun 2024AY 2015-16

Bench: Sri Sanjay Garg & Sri Sanjay Awasthi

Section 143(3)Section 14ASection 14A(2)Section 250

been averred that the ld. AO had to record a satisfaction indicating that the claim regarding the non-applicability/quantum of disallowance u/s 14A of the Act done by the assessee, was not acceptable. It has been stated that in case such satisfaction has not been recorded then it would ... Nanavati vs. ACIT reported in [2012] 25 taxmann.com 141 (Mumbai - Trib.) to canvas the point that depreciation cannot be the subject matter of disallowance u/s 14A of the Act. A reading of this order of Hon'ble ITAT, Mumbai reveals that the conclusion regarding depreciation have been arrived