Rule 8d with sec14a
This query is : Resolved
27 December 2011
Hello Sir/Madam,
My query is that a construction company which has current account with bank OD facility and has made investment to other group companies during the year and not receiving any income which is exempt from the total taxable income, but interest has been paid on OD facility and other bank loans taken for the business purpose so, whether Sec 8D with sec 14A is applicable to this or not.
AO has applied sec8D to this.
My query is that a construction company which has current account with bank OD facility and has made investment to other group companies during the year and not receiving any income which is exempt from the total taxable income, but interest has been paid on OD facility and other bank loans taken for the business purpose so, whether Sec 8D with sec 14A is applicable to this or not.
AO has applied sec8D to this.
28 December 2011
Hi,
Sec 14A is for disallowance of expense incurred in relation to the income which is exempt from tax. And to calculate proportionate expenditure Rule 8D is there.
In your case, your client has not received any income hence Sec 14A cant be invoked at all.
Sec 14A is for disallowance of expense incurred in relation to the income which is exempt from tax. And to calculate proportionate expenditure Rule 8D is there.
In your case, your client has not received any income hence Sec 14A cant be invoked at all.
31 December 2011
Go for appeal.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- TDS Challan Code
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Rent lease agreement
- Merchant Export Accounting
- Agriculture income or business income
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
