20 June 2008
I want to know about section- 14A of Income Tax Act & Rule-8D of Income Tax Rules. Is this section applies to Bonus Shares also. If yes, then what would be the value of such shares.
The fact is: Assessee: NBFC Company.
AO has re-opened the case for AY: 01-02 u/s 147, the grounds on which AO has re-opened the case is- he wants to disallow company's total expenditure in properation of dividend income(Exempeted Income) as per Section- 14A & Rule-8D
20 June 2008
Yes AO is correct. He can reopen the above mentioned case u/s.147.(Income escaping assessment) Meaning of income escaped- -No return is filed though income exceeds the basic exemption limit. -Return is furnished but no assessment has been made & the A.O. notices that the assessee has understated the income or claimed excessive loass, deduction, etc -where an assessment has been made - The income chargeable has been under assessedor - Such income is assessed at too low rate - Excessive relief was given - excessive loss, dep or other allowances has been computed.
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