Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
Benami transaction and beneficial ownership: documentary and circumstantial evidence show payors were true beneficiaries, resulting in PBPTA consequen...
Disallowance under s.14A r/w r.8D was examined where the taxpayer had made a suo motu disallowance against exempt income. Since r.8D is not automatic, the AO could invoke it only after examining the taxpayer's accounts and recording satisfaction under s.14A(2) that the taxpayer's claim was incorrect; a mere remark that the disallowance was "very low" did not meet this statutory requirement. Applying this mandatory satisfaction test, as reiterated in Maxopp, the r.8D-based incremental disallowance was held bad in law and deleted, restricting disallowance to the taxpayer's suo motu amount; the appeal was allowed. - ITAT
Disallowance under s.14A r/w r.8D was examined where the taxpayer had made a suo motu disallowance against exempt income. Since r.8D is not automatic, the AO could invoke it only after examining the taxpayer's accounts and recording satisfaction under s.14A(2) that the taxpayer's claim was incorrect; a mere remark that the disallowance was "very low" did not meet this statutory requirement. Applying this mandatory satisfaction test, as reiterated in Maxopp, the r.8D-based incremental disallowance was held bad in law and deleted, restricting disallowance to the taxpayer's suo motu amount; the appeal was allowed. - ITAT
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