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
From the Courts »
 A.G. Industries Pvt. Ltd., House No. 26, Anandlok, New Delhi vs. ACIT, Circle-1(1), New Delhi
 Sahara India Financial Corpn. Ltd., 1-Kapoorthala Complex, Aliganj, Lucknow. Vs. The Addl. Commissioner of Income Tax, Central Range-I, New Delhi.
 Chahat Exim Pvt. Ltd, A-113, Safdurjung Enclave, New Delhi Vs. ACIT, Circle-6(1), New Delhi
 DCIT, Cent. Central -8, New Delhi Vs. Dynasty Construction (P) Ltd., M-11, Middle Circle Connaught Place, New Delhi
 Ms. Simran Hoon C/o S.J.B. Relan, Chartered Accountant 901, Vikram Tower, 16, Rajendra Place, Vs. DCIT Circle-3 New Delhi.
 Shri Mukul Joshi, D-45, Second Floor, South Extension Part-2, New Delhi. Vs. The DCIT, Central Circle-19, Jhandewalan Extension, New Delhi.
 Virgo Marketing Pvt. Ltd. C/o Rra Taxindia,D-28, South Extension,Part-I, New Delhi – 49 Vs. Ito, Ward 26(4), Bulandshahr
 Dy. Commissioner of Income Tax, Circle-1, LTU, New Delhi. Vs. SRF Ltd. Block – C, Sector – 45, Gurgaon
 Agson Global Pvt. Ltd, A-25, Nirman Vihar, New Delhi Vs. The Assistant Commissioner of Income Tax , Central Circle-28, New Delhi
 IRCON International Limited, Palika Bhawan, R.K. Puram Sector-13, New Delhi Vs. Addl. C.I.T., Range-11, New Delhi.
 ACIT, Central Circle-26, New Delhi Vs. Majestic Properties Pvt. Ltd., 1/18B, Asaf Ali Road, 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 2019 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