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| The Tax Publishers2022 TaxPub(DT) 0570 (Bang-Trib) INCOME TAX ACT, 1961
Section 14A
As assessee did not earn any exempt income during the year under consideration, therefore, no disallowance could be made under section 14A.
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Disallowance under section 14A - Expenditure against exempt income - No exempt income earned during the year -
AO noticed investment in assessee's balance-sheet and thus made disallowance under section 14A. Assessee pleaded to have earned no exempt income earned during the year. Held: It is an undisputed fact that the assessee did not earn any exempt income during the year under consideration and, therefore, in the absence of any exempt income, no disallowance could be made under section 14A.
Relied:CIT & Anr. v. Quest Global Engineering Sources Pvt. Ltd. [ITA No.133/2015, judgment dated 15-2-2021] : 2021 TaxPub(DT) 1428 (Karn-HC) India Debt Management (P) Ltd. reported in (2019) 106 taxmann.com 55 (Bombay) : 2019 TaxPub(DT) 4692 (Bom-HC) and Chemvinvest Ltd. v. CIT (2015)Taxman 761/375 ITR 33 (Del-HC) : 2015 TaxPub(DT) 3520 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-2012
INCOME TAX ACT, 1961
Section 37(1) Section 40(a)(ia)
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