The Income Tax Appellate Tribunal has dropped the disallowance of ₹ 65,15,719 under section 14A of the Income Tax Act, 1961 against Vedant Fashions.
The Vedant Fashions filed an appeal before the ITAT a previous order from the Commissioner of Income Tax in relation to its Return of Income for the AY 2020-21.
The appeal was filed challenging the Assessing Officer’s addition of ₹65,15,719 to the company’s income under Section 14A of the Income Tax Act, 1961, based on Rule 8D, where disallowance was made on the exempt income.
The Vedant Fashions appealed to the Commissioner of Income Tax (Appeal), who upheld the AO’s addition and directed the AO to rectify the disallowance to ₹67,90,605.
The Vedant Fashions made a further appeal in ITAT, which deleted the aforesaid addition and passed the order in favor of the Company.
The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
