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2022 (4) TMI 663 - AT - Income TaxDisallowance u/s 14A - expenditure incurred for exempt income - HELD THAT:- As decided in M/s. Leena Kasbekar 2017 (8) TMI 845 - ITAT MUMBAI we find that in the absence of any direct nexus between the expenditure claimed against the exempt income, the AO cannot invoke the provisions of Section 14A read with Rule 8D of the Income Tax Rules, 1962. This finding is squarely applicable on the issue before us. Therefore, since no expenditure has been claimed to reduce any tax liability, there remains no basis to make any disallowance of expenditure against exempt income. We, therefore, delete the disallowance u/s 14A. - Appeal of assessee allowed.
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