TMI Blog2022 (8) TMI 1486X X X X Extracts X X X X X X X X Extracts X X X X ..... which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. In other words, Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. Scope of amendment made by the Finance Act, 2022 to Section 14A - As decided in Era Infrastructure (India) Ltd.[ 2022 (7) TMI 1093 - DELHI HIGH COURT] Amendment to section 14A of the Act which is for removal of doubts cannot be presumed to be retrospective. Allowability of prior period expenses - ITAT and CIT(A) have given concurrent finding of fact on the issue relating to prior period expenses on contract has been allowed in favour of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso, a change in law has been brought about. 4. He further states that the ITAT has erred in restricting the addition of Rs.8,17,696/- to Rs.2,87,351/- resulting in deletion of Rs.5,30,345/- made on account of prior period expenses ignoring the fact that the prior period expenses had to be debited in the profit and loss account of the relevant year. 5. A perusal of the paperbook reveals that the authorities below have given concurrent finding of fact that the assessee did not earn any exempt income during the year under consideration. Consequently, the present case is covered by the judgment of this Court in Cheminvest Ltd. vs. CIT, [2015] 61 Taxmann.com 118 (Delhi), wherein this Court has held that the expression 'does not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has demonstrated that liability has been crystallised in the year under consideration and therefore, the Learned CIT(A) is justified in deleting the disallowance. Further, we find that identical issue of prior period Expenses on contract has been allowed in favour of the assessee by the Tribunal (supra) in assessment year 2005-06 8. In fact the ITAT in the impugned order relying upon the order of the Coordinate Bench in assessee s own case for the assessment year 2005-06 restricted addition to Rs.2,87,251/- made on account of prior period expenses. 9. Though the appellant in the appeal memo has not mentioned the status of the appeal in assessee s own case for the assessment year 2005-06, yet during the course of hearing, l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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