2023 (1) TMI 886 - AT - Income Tax
Disallowance u/s.14A under normal provisions of the Act as well as in the computation of book profits u/s.115JB - HELD THAT:- This issue is no longer res integra in view of the decision of the Hon’ble Supreme Court in the case of Maxopp Investments [2018 (3) TMI 805 - SUPREME COURT] wherein it was held that disallowance u/s.14A of the Act could not be made in the absence of any exempt income.
We find that the provisions of Section 14A of the Act had been amended by the Finance Act 2022 w.e.f. 01/04/2022 - This explanation has been held to be operative prospectively from A.Y.2022-23 onwards as per the Explanatory Memorandum to the Finance Act as well as the decision of Era Infrastructure India Ltd. [2022 (7) TMI 1093 - DELHI HIGH COURT]. In view of the aforesaid judicial precedents, the ground Nos. 1 & 2 raised by the assessee are hereby allowed.
Addition of debenture redemption reserve while computing book profits u/s.115JB - HELD THAT:- No infirmity in the order of the ld. CIT(A) dismissing the ground of the assessee. Accordingly, the ground No.3 raised by the assessee is dismissed.