TaxTMI 
TaxTMI 
2019 (4) TMI 1900
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....at the CIT(A) erred in upholding the disallowance of Rs. 1.97 crores on account of Administrative and Personnel expenses determined by the Assessing Officer on notional basis, by applying provisions of section 14A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'. r.w.r. 8D of the Rules, 1962. 3. The solitary grievance of the Revenue is that the CIT(A) erred in deleting the addition made on account of disallowance of interest u/s 14A of the Act to the extent of Rs. 7.30 crores. 4. Since the underlying facts in issues in both these appeals are common and were heard together, they are being disposed off by this common order for the sake of convenience and brevity. 5. The representatives of both the sides were ....
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....dominant purpose test, which is pressed into service by the assessees would apply while interpreting Section 14A of the Act or we have to go by the theory of apportionment. We are of the opinion that the dominant purpose for which the investment into shares is made by an assessee may not be relevant. No doubt, the assessee like Maxopp Investment Limited may have made the investment in order to gain control of the investee company. However, that does not appear to be a relevant factor in determining the issue at hand. Fact remains that such dividend income is non-taxable. In this scenario, if expenditure is incurred on earning the dividend income, that much of the expenditure which is attributable to the dividend income has to be disallowed ....
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....been accepted by the revenue authorities in the preceding A.Ys. 13. Though the Assessing Officer has accepted the methodology of calculation of disallowance of interest but he has considered the net worth of investment as deductible amount from the total investment. It is a settled proposition of law that if the assessee has interest free funds available with it, then, it can be safely presumed that investments have been made out of interest free funds available. We, therefore, do not find any merit in the computation of disallowance of interest made by the Assessing Officer. Firstly, the approach of adopting net worth cannot be accepted as interest free available funds available with the assessee should be given set off against the inve....
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....Income - Subscription 25000 44,498 -Wealth Tax - Out of Salary Leave Encashment Gratuity 129,744 308,074 21,895,284 Disallowance @ 10% of Rs. 21095264/- 2,189,526 18. The Assessing Officer has computed the disallowance as per Rule 8D of the Rules, which we have already held to be not applicable for the year under consideration. All that has to be considered is whether the disallowance made by the assessee is reasonable qua the facts of the case. In our considered opinion and after considering the computation as mentioned elsewhere, the suo moto disallowance @ 10% is reasonable and....
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....0,000 14 22,013,164 03-May-05 Ranbaxy Shares 10,000,000 05-May-05 Ranbaxy Shares 10,000,000 09-May-05 Ranbaxy Shares 30,000,000 10-May-05 Ranbaxy Shares 30,000,000 11-May-05 Ranbaxy Shares 150,000,000 12-May-05 Ranbaxy Shares 65,000,000 16-May-05 Ranbaxy Shares 10,000,000 17-May-05 Ranbaxy Shares 10,000,000 18-May-05 Ranbaxy Shares 5,000,000 19-May-05 Ranbaxy Shares 5,000,000 172 023 017 7,183,932,947 2 3,149,121 7,193,932,947 4 6,307,010 7,223,932,947 1 1,583,328 7,253,932,947 1 1,589,903 7,403,932,947 1 1,622,780 7,468,932,947 4 6,548,106 7,478,932,947 1 1,639,218 7,488,932,947 1 1,641,410 7,493,932,947 1 1,642,506 7,498,93....