Dy. CIT v. Adani Logistics Ltd.

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The Tax Publishers2019 TaxPub(DT) 7317 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 14A

Expenses relatable to earning of exempt income deserve to be disallowed under section 14A, accordingly, in the absence of any exempt income being claimed by assessee, section 14A read with rule 8D could not be invoked and no expenses could be considered for disallowance.

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

AO invoked section 14A read with rule 8D and worked out disallowance. Assessee's case was that no income was claimed as exempt during the year.Held: Expenses relatable to earning of exempt income deserve to be disallowed under section 14A, accordingly, in the absence of any exempt income being claimed by assessee, section 14A read with rule 8D could not be invoked and no expenses could be considered for disallowance.

Relied:CIT v. Corrtech Energy Ltd. (2014) 372 ITR 97 (Guj) : 2014 TaxPub(DT) 2072 (Guj-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

INCOME TAX ACT, 1961

Section 14A Section 115JB