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2022 (10) TMI 300 - HC - Income TaxDisallowance u/s 14A - Scope of expression 'does not form part of the total income' in Section 14A - HELD THAT:- In the opinion of this Court, the present case is covered by the Division Bench judgment 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 means 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. This Court in Pr. Commissioner of Income Tax (Central)-2 Vs. M/s Era Infrastructure (India) Ltd. . [2022 (7) TMI 1093 - DELHI HIGH COURT] has dealt with the issue of amendment made by the Finance Act, 2022 to Section 14A of the Act held that the amendment of Section 14A, which is “for removal of doubts” cannot be presumed to be retrospective even where such language is used, if it alters or changes the law as it earlier stood.” - No substantial question of law.
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