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RU
No Extra 14A Disallowance When Suo-Moto Exceeds Exempt Income: ITAT Mumbai
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taxguruin
Bennett Coleman & Co. Ltd. Vs DCIT (ITAT Mumbai)Indexation Allowed in MAT Book Profits -No Extra 14A Disallowance When Suo-Moto Exceeds Exempt Income – Mumbai ITATThe appeal was filed by Bennett Coleman & Co. Ltd. against the order of CIT(A), NFAC, Delhi dated 27.03.2024.
Tribunal observed that since suo-moto disallowance exceeded exempt income & AO had not demonstrated any error, there was no justification for enhancement.
Where Assessee’s suo-moto disallowance u/s 14A already exceeds exempt income & AO fails to point out errors, no further disallowance is warranted.
For MAT u/s 115JB, disallowance u/s 14A cannot be applied.
The undisputed facts are that the exempt dividend is only Rs.2.16 Crores whereas the suo-moto disallowance is Rs.
['assessee'
'book'
'exceeds'
'income'
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'mumbai'
'14a'
'itat'
'act'
'115jb'
'extra'
'ao'
'ld'
'disallowance'
'suomoto'
'rs']