Vil Ltd. v. ACIT - Taxpublishers.in

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The Tax Publishers2019 TaxPub(DT) 2298 (Del-Trib)

INCOME TAX ACT, 1961

Section 14A

In absence of any exempt income earned by the assessee, during the relevant year, no disallowance can be made under section 14A.

Disallowance under section 14A - Expenditure against exempt income - No exempt income earned during the year -

AO noticed investment in assessee's books and accordingly invoked section 14A so to make disallowance. Assessee's case was that no exempt income was earned during the year under consideration. Held: Undisputedly during the year, assessee had not earned any exempt income. In absence of any exempt income earned by assessee, no disallowance could be made under section 14A.

Followed:Cheminvest v. CIT (2015) 61 Taxmann.com 118 (Del) : (2015) 378 ITR 33 (Del) : 2015 TaxPub(DT) 3520 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 41(1)