Sec. 14A disallowance to be restricted to amount of exempt income only; SLP dismissed

Sec. 14A disallowance to be restricted to amount of exempt income only; SLP dismissed

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Sec. 14A disallowance to be restricted to amount of exempt income only; SLP dismissed.

[2018] 99 taxmann.com 286 (SC)

SUPREME COURT OF INDIA

Principal Commissioner of Income Tax, Patiala.

vs.

State Bank of Patiala

Section 14A, read with section 263, of the Income-tax Act, 1961 – Expenditure incurred in relation to income not includible in total income (Computation of) – Assessment year 2010-11 – In course of assessment, Assessing Officer made addition on account of apportionment of expenses against exempted income under section 14A – Commissioner passed a revisional order directing Assessing Officer to enhance amount of addition under section 14A – Tribunal set aside revisional order as well as consequent assessment order passed by Assessing Officer enhancing addition made under section 14A – High Court upheld order of Tribunal holding that amount of disallowance under section 14A could be restricted to amount of exempt income only and not a higher figure – Whether on facts, SLP filed

against decision of High Court was to be dismissed – Held, yes [Para 1][In favour of assessee]

 

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