The Tax Publishers2019 TaxPub(DT) 7141 (Mum-Trib)

INCOME TAX ACT, 1961

Section 14A

As assessee had not earned any exempt income during the year under consideration, no disallowance could be made under section 14A.

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

AO noticed investments in assessee's balance-sheet. Accordingly, AO invoked section 14A read with rule 8D and worked out disallowance.Held: As assessee had not earned any exempt income during the year under consideration, no disallowance could be made under section 14A.

REFERRED : Maxopp Investment Ltd. v. CIT Civil Appeal 104-109 of 2015 dated 12-2-2018 : 2018 TaxPub(DT) 1403 (SC).

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 41(1)

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