Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 1015 - AT - Income TaxDisallowance u/s 14A - Disallowance of expenditure to extent of the exempt income - HELD THAT:- CIT(A) has rightly restricted the disallowance to the extent of the exempt income. Significantly, in the case of PCIT vs. M/s. ERA Infrastructure (India) Ltd. [2022 (7) TMI 1093 - DELHI HIGH COURT] had the occasion to examine the law on applicability of Section 14A having regard to the newly inserted Explanation to Section 14A as codified by Finance Act, 2022. The Hon'ble High Court held that the aforesaid Explanation cannot be presumed to be retrospective in operation. As a corollary, the law prevailing prior to the insertion of Explanation would continue to apply and shall not be guided by the Explanation being prospective. We therefore see no reason to interfere with the order of the CIT(A) which is in sync with extant law as expounded by judicial precedents. - Decided against revenue.
|