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2023 (8) TMI 878 - AT - Income TaxDisallowance u/s. 14A r.w.r.8D - Scope of amendment in Section 14A - expenditure incurred on earning exempt income - HELD THAT:- As in the present case before us which pertains to A.Y.2013-14, are of the opinion that change in provision of Section 14A will have no retrospective binding effect. Contention of the Ld. AR that now when the assessee company had not received any exempt income during the year under consideration, therefore, no disallowance u/s. 14A of the Act was called for in its hand is acceptable, since the aforesaid contention of the Ld. AR is duly supported by the judgment of Chettinad Logistics Pvt. Ltd. [2018 (7) TMI 567 - SC ORDER] and in the case of Pr. CIT Vs. Oil Industries Dev. Board [2019 (3) TMI 1571 - SC ORDER]. Thus disallowance u/s 14A gets restricted to the extent of exempt income, even if the provisions of the section are attracted. In view of the above precedents, which are squarely applicable to the facts of the instant case, we limit the disallowance to the extent of exempt income.
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