catchwords: exempt income
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Whether Flat Purchased Within One Year From The Date Of Sale Would Be Entitled To Claim Exemption U/s. 54?
A right in Flat No. 32G was acquired in May, 2004, which was under construction. For which he made payments in instalments. The said right was sold by him on 3-6-2009 without taking the possession of the said flat.
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Whether Disallowance U/s. 14A Can Be Made, If No Tax Free Income Earned By The Assessee?
(i) In Shankar Chemicals Works vs. DCIT [47 SOT 121], the Ahmedabad Tribunal has held that, if any expenditure has been incurred for earning exempt income, same has to be disallowed even if there is no actual earning of any exempt income. If interest bearing borrowed funds are utilised for purpose of investment in shares and there is no receipt of dividend income or if there is only meagre dividend income, even then whole amount of interest expenditure incurred for this purpose will be subject to disallowance under section 14A because the same has been incurred for earning exempt income.
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Whether AO Can Disallow Expenditure U/s. 14A From Dividend Of Shares Held As Stock-in-trade?
• As per ITO v. Daga Capital Management Pvt. Ltd [312 ITR (AT) Mumbai (SB)], section 14A is applicable to both i.e. when the shares are held as stock-in-trade and investment. • In Godrej and Boyce Mfg Co. Ltd. v. DCIT [328 ITR 81] the Bombay High Court has held that the expression
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Whether AO Is Justified In Disallowing Expenses U/s. 14A From Interest And Remuneration From The Firm?
If the assessee has borrowed the amount and invested in the firm, where from he receives, remuneration and share of profit, then, the Assessing Officer is justified in making disallowance u/s. 14A proportionately.