The Tax Publishers2021 TaxPub(DT) 0909 (Mad-HC) : (2021) 436 ITR 0323 : (2021) 279 TAXMAN 0125

INCOME TAX ACT, 1961

Section 14A

In the absence of exempt income earned during the year, no disallowance could be made under section 14A.

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

AO noticed investments in shares in assessee's balance sheet and accordingly made disallowance under section 14A read with rule 8D. Assessee pleaded to have earned no exempt income during the year. Held: In the absence of exempt income earned during the year, no disallowance could be made under section 14A.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08 to 2010-11, 2012-13 and 2013-14.


INCOME TAX ACT, 1961

Section 32(1)

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