[aaykarbhavan] AO can make Rule 8D disallowances if claim isn’t satisfactory and cogent reasons are recorded

 

AO can make Rule 8D disallowances if claim isn't satisfactory and cogent reasons are recorded

June 11, 2014[2014] 45 taxmann.com 367 (Kolkata - Trib.)

IT-I : Assessing Officer can make disallowance under rule 8D of 1962 Rules only when he is not satisfied with correctness of claim of expenditure made by assessee and such a satisfaction has to be an objective one based on cogent reasons

IT-II : A claim of interest on capital borrowed for purpose of business can be disallowed only where borrowing is for acquisition of an asset intended for extension of an existing business

IT-III : Where assessee gave a boiler on lease in earlier year rental income from which was duly declared in return of income, said boiler being a part of block of assets, assessee's claim for depreciation in respect of same was to be allowed under section 32(1)(ii)

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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