sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« From the Courts »
 Mr. Trilok Chand Chaudhary, 39, Gadai Pur, Mehrauli, vs. ACIT Central Circle 26, New Delhi.
 Mr. Trilok Chand Chaudhary, 39, Gadai Pur, Mehrauli, vs. ACIT Central Circle 26, New Delhi.
 Jagmal Singh Village Khoh, VPO Manesar, Gurgaon Haryana vs. ITO Ward-2(2) Gurgaon
 Mrs. Shumana Sen, B-602, Plot No.F-2, The Crescent, Sector-50, Noida, Uttar Pradesh. vs. DCIT, Circle-64(1), New Delhi.
 Commissioner Of Income Tax Vs. M/S. Ansal Properties And Industries
 Binod Kumar Agarwala vs. CIT (Calcutta High Court)
 L&T Finance Limited vs. DCIT (Bombay High Court)
 Spice Mobility Ltd. 19A & 19B, Floor No. 5 Global Knowledge Park, Sector-125 vs. Addl. CIT(TDS) Noida
 ACIT, Central Circle-2, New Delhi. vs. Kanwar Singh Tanwar, 127, Asola Fatehpur Beri, New Delhi.
 ACIT Circle, Income Tax Office, Opp. Teacher’s Colony Bulandshahar vs. Zila Sahkari Bank Ltd. Moti Bagh Bulandshahar
 M/s. RL Travels Pvt. Ltd.,118, Ansal Bhawan,Kasturba Gandhi Marg,New Delhi - 110 001. vs. The DCIT, Central Circle-12 New Delhi.

ACIT vs. Vireet Investment Pvt Ltd (ITAT Delhi) (Special Bench)
June, 26th 2017

S. 14A/ Rule 8D: (i) The computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A read with Rule 8D of the Income tax Rules 1962, (ii) Only those investments are to be considered for computing the average value of investment which yielded exempt income during the year

The Special Bench had to consider the following two important questions of law:

(i) Whether the expenditure incurred to earn exempt income computed u/s 14A could not be added while computing book profits u/s 115JB of the Act? And

(ii) Whether investments which did not yield any exempt income should enter into the computation under Rule 8D while arriving at the average value of investment, income from which does not form part of the total income?

HELD by the Special Bench deciding both issues in favour of the assessee:

(i) We answer the question referred to us in favour of the assessee by holding that the computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A read with Rule 8D of the Income tax Rules 1962.

(ii) Only those investments are to be considered for computing the average value of investment which yielded exempt income during the year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions