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| The Tax Publishers2019 TaxPub(DT) 4744 (Del-Trib) INCOME TAX ACT, 1961
Section 14A Rule 8D
As there was no exempt income earned by assessee during the relevant assessment year, no disallowance could be made by invoking the provisions contained under section 14A.
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Disallowance under section 14A - Expenditure against exempt income - No exempt income -
AO noticed that assessee showed investment in shares to earn dividend income. Accordingly, he invoked the provisions contained under section 14A read with rule 8D and made disallowance on the ground that the assessee did not make any disallowance under section 14A to earn exempt income. Assessee contended that no exempt income was earned during the year under assessment, therefore, the provisions under section 14A read with rule 8D would not be attracted. Held: Since there was no exempt income earned by assessee during the relevant assessment year, no disallowance could be made by invoking the provisions contained under section 14A.
Distinguished:Maxopp Investment Ltd. v. CIT (2018) 402 ITR 640 (SC): 2018 TaxPub(DT) 1403 (SC).
REFERRED : Pr. CIT v. Oil Industry Development Board (2019) 103 Taxmann.com 326 (SC): 2019 TaxPub(DT) 1945 (SC) asnd CIT v. Chettinad Logistics (P) Ltd. (2018) 95 Taxmann.com 250 (SC): 2018 TaxPub(DT) 4126 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2013-14
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