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2022 (8) TMI 1486 - DELHI HIGH COURTAddition u/s 14A - exempt income earned or not? - direct and proximate nexus between exempted income which the investment shall generate and the expenditure directly or indirectly involved in earning the said income - HELD THAT:- The present case is covered by the judgment of this Court in Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] wherein this Court has held that the expression 'does not form part of the total income' in Section 14A of the Act that there should be an actual receipt of income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. In other words, Section 14A will not apply if no exempt income is received or receivable during the relevant previous year. Scope of amendment made by the Finance Act, 2022 to Section 14A - As decided in Era Infrastructure (India) Ltd.[2022 (7) TMI 1093 - DELHI HIGH COURT] Amendment to section 14A of the Act which is for removal of doubts cannot be presumed to be retrospective. Allowability of prior period expenses - ITAT and CIT(A) have given concurrent finding of fact on the issue relating to prior period expenses on contract has been allowed in favour of the assessee by the Tribunal in assessment year 2005-06 [2017 (10) TMI 1577 - ITAT DELHI] Though the appellant in the appeal memo has not mentioned the status of the appeal in assessee’s own case for the assessment year 2005-06, yet during the course of hearing, learned counsel for the appellant-revenue admitted that no appeal had been filed against the said order. No substantial question of law
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