M/s Krishak Bharati Cooperative Ltd. vs Asst. CIT, Central Circle-30

Parties Involved

Facts Summary

The assessee, M/s Krishak Bharati Cooperative Ltd., filed an appeal against the order of the Ld. CIT(A) confirming disallowance of Rs. 8,50,90,660/- under Section 14A of the Income Tax Act, 1961 and disallowance of Rs. 68,37,523/- claimed by the assessee towards the ‘Amortization of Lease Rent’. The assessee argued that no exempt income was earned, hence no disallowance under Section 14A should apply. The Tribunal examined the applicability of Section 14A and the nature of the lease rent amortization.…

Legal Issues

• 1. Disallowance under Section 14A of the Income Tax Act, 1961
• 2. Disallowance of amortization of lease rent

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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