ITAT restored issue of disallowance to AO for fresh consideration
ITAT restored issue of disallowance to AO for fresh consideration
Piem Hotels Ltd showed investment from which dividend income earned had not been included assessee’s total income. It received tax free dividend income and claimed exemption. In response to show cause notice, it submitted that it had estimated Rs. 34,309 for disallowance u/s 14A (of Income Tax Act, 1961). AO calculated disallowance u/r 8D (of Income Tax Rules, 1962) at Rs. 31,41,129. CIT(A) confirmed disallowance. ITAT restored the matter to AO for fresh consideration.-500643
1. Piem Hotels Ltd was engaged in business of Hotel & Catering services.
2. It had shown investment to the extent of Rs. 102,25,71,000 from which a dividend income earned had not been included assessee’s total income.
3. It received tax free dividend income of Rs. 1,63,06,763, which had been claimed as exempt.
4. In response to show cause notice, it submitted that it had estimated Rs. 34,309 for the purpose of disallowance u/s 14A (of Income Tax Act, 1961) and no further disallowance was called for.
5. AO rejected the explanation and held that same was to be calculated as per Rule 8D (of Income Tax Rules, 1962) only and accordingly, made disallowance of Rs. 31,41,129.
6. CIT(A) confirmed the disallowance.
On appeal, the ITAT held as under:
7. However, we are of the opinion that this matter required fresh consideration from the AO.
8. Therefore, we set aside this matter to the file of the AO and direct him to deal and decide the issue afresh and an opportunity should be afforded to the assessee to raise all its arguments, including legal issues as culled out from judicial pronouncements in support of its contentions.
Case Reference - Piem Hotels Ltd Vs. Addl CIT.
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "C", MUMBAI
BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER
AND SHRI AMIT SHUKLA, JUDICIAL MEMBER
ITA No. : 978/Mum/2014
(Assessment year :2010-11)
×
