Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 1461 - AT - Income TaxDisallowance u/s 14A - Held that:- Addition should not be made unless and until there is a receipt of exempt income for the assessment year under consideration, and for that, we rely on the case of Cheminvest Ltd. vs. CIT (2015 (9) TMI 238 - DELHI HIGH COURT), wherein it was held that no disallowance under section 14A can be made in a year in which no exempt income had been earned or received by the assessee. The expression ‘does not from part of total income’ in section 14A envisages that there should be an actual receipt of income, which was not includible in the total income, during the relevant previous year for the purpose disallowing any expenditure incurred in relation to the said income, therefore, section 14A would not apply if no exempt income was received during the relevant previous year. That being so, we decline to interfere in the order passed by the CIT(A), his order on this issue is hereby upheld and the ground of appeal raised by the Revenue is dismissed.
|