TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Revenue appeal dismissed as High Court favors assessee on interest & disallowance issues</h1> <h3>Dy. Commissioner of Income Tax, Circle – 9, Pune Versus Jai Hind Co-operative Bank Ltd.</h3> Dy. Commissioner of Income Tax, Circle – 9, Pune Versus Jai Hind Co-operative Bank Ltd. - TMI Issues:1. Interest on sticky loans2. Disallowance u/s. 14A r.w. Rule 8DInterest on Sticky Loans:The appeal by the Revenue challenged the Commissioner of Income Tax (Appeals) order for the assessment year 2012-13, focusing on two issues. The first three grounds pertained to interest on sticky loans, while the fourth ground concerned disallowance u/s. 14A r.w. Rule 8D. The assessee's representative cited precedents from the Hon'ble Bombay High Court, emphasizing that the issue of interest on sticky loans was resolved in favor of the assessee. The Commissioner of Income Tax (Appeals) had ruled in alignment with decisions from the Hon'ble Bombay High Court, leading to the dismissal of grounds 1 to 3 raised by the Revenue.Disallowance u/s. 14A r.w. Rule 8D:Regarding the fourth ground of the appeal, the Assessing Officer had disallowed a specific amount under section 14A r.w. Rule 8D, despite the assessee not earning any exempt income in the relevant period. The Commissioner of Income Tax (Appeals) overturned this disallowance, citing the Hon'ble Delhi High Court's judgment that no disallowance should occur in the absence of exempt income. The tribunal found no reason to interfere with the Commissioner's decision, leading to the dismissal of the fourth ground raised by the Revenue. Ultimately, the appeal by the Revenue was dismissed, upholding the decisions made by the Commissioner of Income Tax (Appeals) in both issues.Judgment:The Hon'ble Jurisdictional High Court rulings played a pivotal role in resolving the issues raised by the Revenue. The decision underscored the eligibility of Co-operative Banks for deduction u/s. 43D concerning interest on sticky advances/Non Performing Assets. Additionally, the judgment emphasized that no disallowance u/s. 14A should occur if the assessee has not earned any exempt income. The tribunal, in alignment with the legal precedents, dismissed the Revenue's appeal, affirming the decisions made by the Commissioner of Income Tax (Appeals) on both the interest on sticky loans and disallowance u/s. 14A r.w. Rule 8D issues.
TaxTMI 
TaxTMI 
