TMI Blog2023 (10) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... Respectfully following the decision of Era Infrastructure (India) Ltd. [ 2022 (7) TMI 1093 - DELHI HIGH COURT] we hold that the operation of explanation to provisions u/s 14A by way of Finance Act, 2022 is only prospective in nature and cannot be made applicable to the year under consideration. Since it is an undisputed fact that there is no dividend income earned in the relevant previous year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n involved in this appeal is, as in the assessment year 2013-14, if the assessee does not earn any exempt income, whether any disallowance could be made under section 14A of the Income Tax Act, 1961 (for short the Act ), read with Rule 8D of Income Tax Rules, 1962 ( Rules ). On facts there is no dispute that the assessee did not earn any exempt income during the year. 3. According to the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 33] (Del) and submitted that the amendment referred to by the learned DR by way of Finance Act, 2022 is only prospective in nature and in view of the decision in the case of Cheminvest Ltd., (supra), no disallowance could be made by invoking 14A of the Act read with Rule 8D of the Rules , if the assessee does not earn any exempt income during the year. 5. We have gone through the record in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2021) 129 taxmann.com 145 and held that the amendment of section 14A of the Act which is for removal of doubt cannot be presumed to be retrospective even where such language is used, if it alters or changes law as it earlier stood. 6. Respectfully following the decision of Hon'ble Delhi High Court in the case of Era Infrastructure (India) Ltd., (supra), we hold that the operation of expl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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