Pr. CIT v. Caraf Builders & Constructions (P.) Ltd.

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The Tax Publishers2020 TaxPub(DT) 0063 (SC) : (2020) 268 TAXMAN 0317

INCOME TAX ACT, 1961

Section 261 Section 14A

Where the Department preferred SLP to appeal against the judgment of Delhi High Court in Pr. CIT v. M/s. Caraf Builders & Constructions Pvt. Ltd. [ITA No. 1260/2018, dt. 13-11-2018] : (2019) 414 ITR 122 (Del) : 2018 TaxPub(DT) 7786 (Del-HC), whereby the High Court held that the fact that assessee had not claimed any exempt income during the relevant assessment year was accepted by revenue, that if for the relevant assessment year, the assessee did not earn any tax-free income, the corresponding expenditure incurred could not be taken into consideration for disallowance, thus, other grounds lacking substantial question of law became academic, the Supreme Court dismissed the SLP.

Appeal (Supreme Court) - Special leave petition - Expenditure against exempt income - No exempt dividend income claimed by assessee

Department preferred SLP to appeal against the judgment of Delhi High Court in Pr. CIT v. M/s. Caraf Builders & Constructions Pvt. Ltd. [ITA No. 1260/2018, dt. 13-11-2018] : (2019) 414 ITR 122 (Del) : 2018 TaxPub(DT) 7786 (Del-HC), whereby the High Court held that the fact that assessee had not claimed any exempt income during the relevant assessment year was accepted by revenue, that if for the relevant assessment year, the assessee did not earn any tax-free income, the corresponding expenditure incurred could not be taken into consideration for disallowance, thus, other grounds lacking substantial question of law became academic. Held: The Supreme Court dismissed the SLP.