INCOME TAX ACT, 1961

Section 14A

Disallowance under section 14A - Expenditure against exempt income - Disallowance exceeding exempt income whether can be made -

Issue was as regards disallowance made under section 14A exceeding the exempt income itself. Held: CIT(A) already upheld disallowance to extent of exempt income earned by assessee in relevant year. As per Tribunal's order in case of Sivan Securities and also judgment of Delhi High Court rendered in case of CIT v. Joint Investment (P) Ltd. (2015) 372 ITR 694 (Del) : 2015 TaxPub(DT) 1375 (Del-HC), disallowance under section 14A cannot exceed the exempt income earned in the relevant year.

Followed:CIT v. Joint Investment (P) Ltd. (2015) 372 ITR 694 (Del) : 2015 TaxPub(DT) 1375 (Del-HC); Sivan Securities Pvt. Ltd v. DCIT 2019 TaxPub(DT) 4663 (Bang-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2014-15

INCOME TAX ACT, 1961

Section 37(1)

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