Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 154 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - expenditure for earning exempted income in the form of dividend on shares - whether the disallowance u/s 14A is triggered even when exempt income is absent during the relevant year? - HELD THAT:- We find that in assessee’s own case for AY 2017- 18 [2023 (1) TMI 1285 - ITAT INDORE]has already held that no disallowance is attracted in such cases. Coming to the subsequent development of amendment in section 14A, we have seen the Explanatory Memorandum to Finance Bill, 2022, we find that it is clearly mentioned therein that the amendment shall apply from 01.04.2022. Furthermore, the said amendment has also been examined in two decisions relied upon by Ld. AR, M/S. ERA INFRASTRUCTURE (INDIA) LTD. [2022 (7) TMI 1093 - DELHI HIGH COURT] and LODHA DEVELOPERS LTD. (SUCCESSOR TO PALAVA DWELLERS PVT. LTD) [2022 (9) TMI 152 - ITAT MUMBAI] and have held that the amendment is prospective. We are inclined to accept the pleadings made by Ld. AR for assessee. Consequently, we hold that the disallowance made by AO u/s 14 is not valid. The same is hereby deleted. The assessee succeeds in this appeal.
|