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2023 (8) TMI 882 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - HELD THAT:- As in the present case, the assessee has not earned any dividend income, therefore, disallowance of expenditure u/s 14A read with Rule 8D is not sustainable. We further find that vide amendment by the Finance Act, 2022, the non-obstante clause and explanation were inserted in section 14A of the Act to the effect that the section shall apply even if no exempt income has accrued or arisen or has been received during the year. We find that while dealing with the issue of whether the aforesaid amendment by the Finance Act, 2022 is prospective or retrospective in operation, M/s Era infrastructure (India) Ltd [2022 (7) TMI 1093 - DELHI HIGH COURT] held that the amendment by Finance Act, 2022 in section 14A is prospective and will apply in relation to the AY 2022–23 and subsequent assessment years. Thus, even in view of the aforesaid amendment also, the disallowance u/s 14A r.w.r. 8D is not permissible in the present case. Disallowance computed u/s 14A read with Rule 8D is directed to be deleted - Decided in favour of assessee.
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