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| The Tax Publishers2019 TaxPub(DT) 8026 (SC) INCOME TAX ACT, 1961
Section 261 Section 14A Rule 8D
Where the department preferred SLP to appeal against the judgment of Delhi High Court in Pr. CIT v. Inductis (India) (P) Ltd. [ITA No. 144/2019, dt. 12-2-2019] : 2020 TaxPub(DT) 551 (Del-HC), whereby the High Court held that section 14A can be invoked only if assessee seeks to square off the expenditure against the income which does not form the part of the total income and in such circumstances, section 14A could not have been invoked, more particularly, when no exempt income claim was earned in the relevant assessment years, therefore, no disallowance under section 14A was to be made in the absence of any exempt income. The Supreme Court dismissed the SLP on the ground of low tax effect, however, question of law was left open.
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Appeal (Supreme Court) - Special leave petition - Disallowance under section 14A - 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. Inductis (India) (P) Ltd. [ITA No. 144/2019, dt. 12-2-2019] : 2020 TaxPub(DT) 551 (Del-HC), whereby the High Court held that section 14A can be invoked only if assessee seeks to square off the expenditure against the income which does not form the part of the total income and in such circumstances, section 14A could not have been invoked, more particularly, when no exempt income claim was earned in the relevant assessment years, therefore, no disallowance under section 14A was to be made in the absence of any exempt income.Held: The Supreme Court dismissed the SLP on the ground of low tax effect, however, question of law was left open.
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