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| The Tax Publishers2021 TaxPub(DT) 6230 (Karn-HC) INCOME TAX ACT, 1961
Section 14A
Where assessee had admittedly not incurred any expenditure, thus the provisions of section 14A were not applicable
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Disallowance under section 14A - Expenditure incurred against earning of exempted income - No expenditure incured by assessee -
Issue arose for consideration as to whether Tribunal is right in law in setting aside the disallowance of expenditure of earning exempt income under section 14A by erroneously holding that no disallowance is called for under section 14A by following earlier order which has not reached finality even when all the ingredients of section 14A are satisfied in the case of assessee.Held: In the case of Syndicate Bank [(2020) 115 Taxmann.com 287 (Karn-HC) : 2020 TaxPub(DT) 697 (Karn-HC)], assessee had admittedly not incurred any expenditure. This case pertains to income on dividend, which, by no stretch of imagination, can be treated to be an expenditure to attract the provisions of section 14A. Thus, following the same, disallowance was liable to be deleted.
Followed::Maxopp Investment Ltd. v. CIT 2018 TaxPub(DT) 1403 (SC), CIT v. Walfort Share & Stock Brokers (P) Ltd. 2010 TaxPub(DT) 2087 (SC), Santosh Hazari v. Puroshottam Tiwari 2001 TaxPub(DT) 1102 (SC), CIT v. Canara Bank [ITA No. 332/2016, dated 2-11-2020] : 2020 TaxPub(DT) 4741 (Karn-HC) and CIT v. Syndicate Bank (2020) 115 Taxmann.com 287 (Karn-HC) : 2020 TaxPub(DT) 697 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 28
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