Sec 14A disallowance to be restricted to amount of exempt income only : SC

29 November 2018Deepak Gupta

Sec 14A disallowance to be restricted to amount of exempt income only : SC | Supreme Court dismisses SLP filed by against order of honable high court in matter ofPr. CIT v. State Bank of Patiala
Pr. CIT v. State Bank of Patiala in SLP(C) Diary No. 24323 of 2018 dated 08.11.2018
In course of assessment, Assessing Officer made addition on account of apportionment of expenses against exempted income under Section 14A of the Income Tax Act, 1961 read with rule 8D of the Income Tax Rules, 1962
CIT gave order against the assessee and passed a revisional order directing theAssessing Officer to enhance amount of addition u/s 14A.
Tribunal gave order in favor of assessee setting aside revisional order as well as consequent assessment order passed by Assessing Officer enhancing addition made u/s 14A.
High Court of Punjab and Haryana upheld order of Tribunal holding that amount of disallowance u/s 14A has to be restricted to amount of exempt income only and not a higher figure.
Click here to download the Order of High Court
Considering these facts, SLP filed by Revenue against decision of High Court was dismissed by the Apex Court.

Sec 14A disallowance to be restricted to amount of exempt income only : SC

The text of judgement is given below :

UPON hearing the counsel the Court made the following

O R D E R

The Special Leave Petition is dismissed both on the ground of delay as well as on merits.

Pending applications, if any, stand disposed of.

Click here to download the Order of Supreme Court

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