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| The Tax Publishers2019 TaxPub(DT) 7192 (Ahd-Trib) : (2020) 182 ITD 0441 INCOME TAX ACT, 1961
Section 14A
No disallowance of under section 14A read with rule 8D could be made in the absence of exempt income.
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Disallowance under section 14A - Expenditure against exempt income - No exempt income during the year -
AO noticed huge investments in shares in assessee's balance sheet and accordingly took the view that assessee was required to make disallowance of the expenses against exempt income from investment under section 10(34). Accordingly, AO invoked section 14A read wirh rule 8D and made disallowance. Assessee's case was that no exempt income was earned during the year.Held: No disallowance of under section 14A read with rule 8D could be made in the absence of exempt income.
Relied:Corrtech Energy (P) Ltd. (2014) 223 Taxman 130 (guj) : 2014 TaxPub(DT) 2072 (Guj-HC) and CIT v. State Bank of Patiala (2019) 99 Taxmann.com 286 (SC) : 2019 TaxPub(DT) 976 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 & 2013-14
INCOME TAX ACT, 1961
Section 14A Section 115JB
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