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2021 (7) TMI 516 - HC - Income TaxDisallowance u/s 14A r.w.r. 8D - HELD THAT:- Substantial questions of law involved in this appeal have been answered in favour of the assessee by this Court in M/S. QUEST GLOBAL ENGINEERING SERVICES PVT. LTD. [2021 (3) TMI 434 - KARNATAKA HIGH COURT] as held only expenses proportionate to earning of exempt income could be disallowed under Section 14A of the Act and the decision of MAXOPP INVESTMENT LTD [2018 (3) TMI 805 - SUPREME COURT] is an authority for the aforesaid proposition that the provision is relatable to earning of actual income. The object of Section 14A is to curb the practice to claim deduction of expenses incurred in relation to exempt income against taxable income and at the same time avail of the tax incentive by way of exemption of exempt income without making any apportionment of expenses incurred in relation to exempt income.
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