TaxTMI 
TaxTMI 
2021 (3) TMI 176
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....he assessment year 2008-09 and ITA.No.2462/Mds/2017 for the assessment year 2009-10 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench (for brevity, the Tribunal). 2. The appellant-Revenue in both the appeals has raised the following substantial questions of law for consideration: "1.Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is right in deleting the addition made u/s 14A of the Act by holding that disallowances made u/s 14A cannot exceed the exempt income, when the provisions of the said section as well as Rule 8D does not provide for any such exceptions? 2.Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is right in not....
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....urther, the Bombay High Court in the case of Godrej & Boyce Manufacturing Company Limited, Mumbai Vs. Deputy Commissioner of Income Tax, reported in (2010) 328 ITR 0081, has elaborated the procedure to be followed by the Assessing Officer under Section 14A in the following terms. "The following principles would emerge from s. 14A : (a) the mandate of s. 14A is to prevent claims for deduction of expenditure in relation to income which does not form part of the total income of the assessee; (b) sec. 14A(1) is enacted to ensure that only expenses incurred in respect of earning taxable income are allowed; (c) the principle of apportionment of expenses is widened by s. 14A to include even the apportionment of expenditure between taxable....
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....e total income. Moreover, the satisfaction of the AO has to be arrived at, having regard to the accounts of the assessee. Hence, sub-s. (2) does not ipso facto enable the AO to apply the method prescribed by the rules straightaway without considering whether the claim made by the assessee in respect of the expenditure incurred in relation to income which does not form part of the total income is correct. The AO must, in the first instance, determine whether the claim of the assessee in that regard is correct and the determination must be made having regard to the accounts of the assessee. The satisfaction of the AO must be arrived at on an objective basis. It is only when the AO is not satisfied with the claim of the assessee, that....
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....es in an industrial park/SEZ is to be charged to tax under the head 'Profits and Gains of Business'. 10. As rightly pointed out by Mr.R.Vijaya Raghavan, the emphasis is on not only letting out of the premises/ developed space but along with other facilities in an industrial park/SEZ. The tribunal in this regard followed a decision of the Division Bench of this Court in the case of CIT Vs. Elnet Technologies Limited, reported in (2013) 30 Taxmann.com 63 (Mad). In the said decision, at paragraph No.11, the Division Bench, has held as follows: "11. In considering whether the income arising on the leasing of the property was business of the assessee, one has to get into the nature of the business of the assessee, to fi....