Disallowance should be restricted to 1% of Dividend Income.
Hon'ble Kolkata tribunal in case of M/s BPS securities (p) Ltd. had held that Disallowance u/s 14A should be restricted to 1% of total Dividend Income.
One Important thing i would like to mention here that the decision of Kolkata Tribunal is come after the Bombay High Court decision in case of Godrej & Boyce.
How relevant tribunal decision would be for refering to client?
ReplyDeleteDecision of a particular tribunal is binding on all tribunals all across india, unless the same has been reversed by the high court. If there are contrary decisions of the ITAT on any particiular issue, then the same should be referred to a larger bench.
ReplyDeleteIt is advisable to make a claim on the basis of ITAT judgements. If subsequently, the same will be reversed, then atleast penlaty will net be levied.