TaxTMI 
TaxTMI 
2018 (8) TMI 1488
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....pany carries on business as a broker. For the assessment year under dispute assessee filed its return of income on 28/10/2012 declaring income of Rs..3,76,42,325/-. During the assessment proceedings the Assessing Officer noticing that assessee has voluntarily disallowed an amount of Rs..12,98,664/- under section.14A of the Act r.w.r. 8D called upon the assessee to justify the claim. 4. After considering the submissions of the assessee, the Assessing Officer was of the view that disallowance of expenditure attributable to earning of exempt income has to be made as per the mode and manner prescribed under rule 8D(2). Though, the assessee stated before the Assessing Officer that no interest bearing fund was utilized for making investment, h....
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....ied upon the decision of the Hon'ble Delhi Court in case of Cheminvest v/s. CIT (2015) 61 taxmann.com 118. Without prejudice to the aforesaid submission, the learned AR submitted, there was sufficient free fund available with the assessee to make investment; therefore, no disallowance of interest expenditure can be made. In support of such contention he relied upon the decision of Hon'ble jurisdictional high court in case of CIT v/s HDFC Bank ltd. 366 ITR 505. 7. The ld. AR submitted, though, the assessee under misconception of law voluntarily made disallowance under section.14A, however, as per the settled legal principle no disallowance is to be made in absence of any exempt income. Therefore, even the disallowance made by the asse....
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....previous assessment year assessee having not earned any exempt income, no disallowance could have been made under section.14A r.w.r. 8D irrespective of the fact that assessee has itself made disallowance under section. 14A. In our view, the reading of the provision of section 14A makes it clear that disallowance to be made under the said provision is with respect to the exempt income earned by the assessee in the particular assessment year. Therefore, what follows is, if there is no exempt income earned during a particular assessment year, no disallowance under section.14A can be made. This view has been expressed by different High Courts including the Hon'ble Delhi High Court in case of Cheminvest v/s. CIT (supra) as well as the Special Be....
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.... payment should not be disallowed u/s.40(a)(ia) of the Act. Though, the assessee made submissions justifying non-deduction of the tax at source for the payment made, however, the Assessing Officer rejecting the submissions of the assessee, disallowed an amount Rs..33,04,084/- under section.40(a)(ia) of the Act. Being aggrieved of such disallowance assessee preferred an appeal before the Commissioner (Appeals). Ld. Commissioner (Appeals) after considering the submissions of the assessee, sustained the disallowance made by the Assessing Officer. Before us, the assessee has challenged the aforesaid decision of the CIT(A) in so far as it relates to disallowance of Rs..18,81,790/- paid to M/s. Bloomberg Data Services Pvt. Ltd. 13. The ld AR s....
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.... and technical services, hence, attracts the provisions of Sectin 194J. We are unable to understand on what basis ld. Commissioner (Appeals) has come to such conclusion, as no material has been brought on record by the department to establish that by making such payments, assessee has availed any technical or managerial services. On the contrary, it appears that the payment made by the assessee to M/s. Bloomberg Data Services Pvt. Ltd., is in the nature of subscription fee for accessing the terminal of the company containing the data base. The Hon'ble jurisdictional High Court in case of CIT v/s. Indian Capital Markets(supra) while considering identical issue relating to payment made to M/s. Bloomberg Data Services Pvt. Ltd has held tha....