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Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
<h1>Section 14A administrative expense disallowance restricted to 2% of exempt income on identical facts.</h1> Administrative expenditure disallowance under section 14A read with rule 8D(2)(iii) was considered in light of the assessee's suo motu computation and the ... Disallowance of administrative expenditure under section 14A - Reasonableness of disallowance under Rule 8D(2)(iii)Section 14A disallowance - Rule 8D(2)(iii) - Reasonable estimation of administrative expenditure - The disallowance of administrative expenditure relatable to exempt income was required to be restricted to 2% of the exempt income instead of the amount computed by the Assessing Officer under Rule 8D(2)(iii). - HELD THAT: - The Tribunal found that the assessee had already made a suo motu disallowance and that, in the assessee's own case for earlier years, it had consistently been held that the investment activity was being looked after by one employee whose salary cost had already been disallowed. Since the facts and circumstances for the year under consideration were stated to be exactly the same, the Tribunal followed its earlier orders and held that a disallowance at 2% of the exempt income represented the proper measure of administrative expenditure under section 14A read with Rule 8D(2)(iii). [Paras 3]The Assessing Officer was directed to restrict the disallowance to 2% of the exempt income.Final Conclusion: The appeal was allowed in part. The disallowance made under section 14A read with Rule 8D(2)(iii) was directed to be confined to 2% of the exempt income for A.Y. 2011-12. Issues: Whether the disallowance under section 14A read with rule 8D(2)(iii) was required to be restricted to 2% of the exempt income.Analysis: The assessee had already made a suo motu disallowance under rule 8D(2)(iii), while the Assessing Officer made a much higher disallowance. The Tribunal followed its earlier order in the assessee's own case on identical facts, where the administrative expenditure attributable to exempt income was restricted to 2% of the dividend income. As the facts for the year under consideration were stated to be the same, the same approach was applied.Conclusion: The disallowance under section 14A read with rule 8D(2)(iii) was restricted to 2% of the exempt income, in favour of the assessee.
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