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| The Tax Publishers2019 TaxPub(DT) 8386 (Del-Trib) INCOME TAX ACT, 1961
Section 14A
As assessee had not earned any exempt income, disallowance made by AO under section 14A following the CBDT Circular No. 5/2014, dt. 11-2-2014 was not valid as Circular of CBDT cannot override provisions of section 14A.
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Disallowance under section 14A - Expenditure against exempt income - No exempt income during the year - Revenue taking plea of CBDT Circular No. 5/2014, dt. 11-2-2014
AO noticed investments in assessee's balance sheet and accordingly, invoked section 14A read with rule 8D. Assessee's case was that it had not earned any exempt income during the year. However, AO following CBDT Circular No. 5/2014, dt. 11-2-2014, worked out disallowance.Held: As assessee had not earned any exempt income, disallowance made by AO under section 14A following the CBDT Circular No. 5/2014, dt. 11-2-2014 was not valid as Circular of CBDT cannot override the provisions of section 14A.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 37(1)
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