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| The Tax Publishers2019 TaxPub(DT) 2610 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A
As assessee had not earned any exempt income during the year under consideration, therefore, no disallowance under section 14A could have been made.
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Disallowance under section 14A - Expenditure against exempt income - No exempt income earned during the year -
Ao noticed investment in assessee's balance sheet and invoked section 14A read with rule 8D and worked out disallowance. Assessee's case was that no exempt income was earned during the year under consideration. Held: As assessee had not earned any exempt income during the year under consideration, therefore, no disallowance under section 14A could have been made.
Followed:Cheminvest Ltd. v. CIT (2015) 378 ITR 33 (Del) : 2015 TaxPub(DT) 3520 (Del-HC) and CIT v. Holicum India (P) Ltd. (2015) 57 taxmann.com 28 (Del) : 2014 TaxPub(DT) 3780 (Del-HC). PCIT, New Delhi v. McDonald India (P) Ltd. (2019) 101 taxmann.com 86 (Delhi) : 2018 TaxPub(DT) 7511 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 & 2013-14
IN THE ITAT, MUMBAI BENCH
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