The Tax Publishers2020 TaxPub(DT) 2310 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 14A

In the absence of exempt income earned by assessee during the year, there could not be any disallowance under section 14A.

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

AO noticed investments in assessee's balance sheet and made disallowance under section 14A. Assessee's case was that no exempt inome was received during the year.Held: In the absence of exempt income earned by assessee during the year, there could not be any disallowance under section 14A.

Followed:S.R. Koshti v. CIT (2005) 276 ITR 165 (Guj) : 2005 TaxPub(DT) 1136 (Guj-HC) and CIT v. Shelly Products, (2003) 261 ITR 367 (SC) : 2003 TaxPub(DT) 1281 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12



IN THE ITAT, AHMEDABAD BENCH

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