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The Tax Publishers2022 TaxPub(DT) 2264 (Rai-Trib) INCOME TAX ACT, 1961
Section 14A
In the absence of exempt income earned during the year, no disallowance under section 14A could be made.
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Disallowance under section 14A - Expenditure against exempt income - No exempt income earned during the year -
AO noticed investments in shares in assesse's balance-sheet. Accordingly, AO made disallowance under section 14A. Assessee pleaded to have earned no exempt income during the year.Held: In the absence of exempt income earned during the year, no disallowance under section 14A could be made.
Followed:Cheminvest Ltd. v. CIT (2015) 378 ITR 33 ( Del-HC) : 2015 TaxPub(DT) 3520 (Del-HC), Pr. CIT v. Karnataka State Financial Corporation Ltd. (2021) 127 Taxmann.com 115 ( Karn-HC) : 2021 TaxPub(DT) 2067 (Karn-HC), Pr. CIT v. Kohinoor Project (P) Ltd. (2020) 425 ITR 700 ( Bom-HC) : 2020 TaxPub(DT) 672 (Bom-HC) and Pr. CIT v. HSBC Invest Direct (India) Ltd. (2020) 421 ITR 125 (Bom-HC) : 2019 TaxPub(DT) 1070 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 36(1)(va)
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