The Tax Publishers2020 TaxPub(DT) 3458 (Visakhapatnam-Trib)

INCOME TAX ACT, 1961

Section 14A Rule 8D

In absence of exempt income earned during the year, no disallowance could be made under section 14A read with rule 8D.

Disallowance under section 14A - Expenditure against exempt income - No exempt income earned -

AO noticed investments in shares in assessee's balance sheet and accordingly, made disallowance under section 14A read with rule 8D. Assessee's case was that no exempt income was earned during the year. Held: As there was no exempt income earned during the year, no disallowance could be made under section 14A read with rule 8D.

Followed:Asstt. CIT v. Girija Smelters Ltd. ITA No. ITA Nos. 306 & 307/VIZ/2018 by Order, dated 26-9-2018.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

IN THE ITAT, VISAKHAPATNAM BENCH

V. DURGA RAO, J.M. & D.S. SUNDER SINGH, A.M.

ACIT v. NSL Textiles Ltd.

I.T.A. No. 541/Viz/2018

18 March, 2020

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