Section 14A Disallowance In Remand Cannot Exceed Original Disallowance: Delhi High Court

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Mon, Mar 26, 2012 at 2:02 PM
Subject: Message from EGroup of SolapurCAs S. 14A Disallowance In Remand Cannot Exceed Original Disallowance: Delhi High Court
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

CIT vs. Machino Plastic Ltd (Delhi High Court)

In remand, s. 14A disallowance cannot exceed original disallowance

 

The AO made a disallowance u/s 14A of Rs. 45 Lakhs on the ground that the assessee had not been able to segregate expenses relating to earning of dividend income and that borrowed funds had been used to fund the investments. The CIT (A) reduced the quantum of disallowance & the department accepted that. In the assessee's appeal, the Tribunal totally deleted the disallowance. On appeal by the department, HELD:

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Regards,

Editor,

itatonline.org

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