Section 14A

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Sonu Pandit

7 Points Joined May 2017

Asseesee claimed 24 lakh Agri. Income with nil expenses.
We calculated his Agri income 5 lakh based on extent of land cultivated as per revenue Dept documents patta chitta adangal. We got the production and expenditure details per acre from the agriculture Dept. Calculated as
Land extent * production per acre * price of crop and subtracted the expenses as per the details given by agriculture Dept.
Gross Agri income- 5 lakh, expenses- 1.5 lakh , Net Agri income- 3.5 lakh.
Now ACIT asked me to calculate 14A disallowance. Kya yha 14A applicable h ? According to me, No. Kyuki 14A ki 1st line me ye likha h if AO satisfied that the claim of expenses in books of the asseesee is wrong , or there are no expense at all for earning the exempt income. Here claim of asseesee outrightly rejected n we ourselves have calculated the expenses.
Throw some light!!

Replies (3)

Kapadia Pravin

17264 Points Joined December 2018

It is within the power of AO.

As per 14A(3) --
""
(3) The provisions of sub-section (2) shall also apply in relation to a case where an assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under this Act .""

Sonu Pandit

7 Points Joined May 2017

Here my point is that we have outrightly rejected the claim of the assessee and we ourselves have calculated the exempt income and expenses. Then how could we doubt our own calculated expenses?

Adam Hamilton

Bangalore

24 Points Joined May 2021

Yes, exactly. How can we doubt it? I mean everything is digitalized now, and it's good that it is. It was too hard to get any document in India, and land records were the worst of all.
My land is in the Tamil Nadu district, so I had to apply for Patta Chitta. Patta and Chitta used to be separate documents, but they merged them into one in 2015.
Still, applying for it is not easy. I had to use https://hrex.org/view-patta-chitta-online .
To be honest, I would struggle without that because they've made it complicated, but still, it's better than it was before digitalization.