2024 (10) TMI 1207

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..... t Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC, Mr. Abhishek Anand and Mr. Pranjal Singh, Advocates For the Respondent Through: Mr. Aditya Vohra and Mr. Shashvat Dhamija, Advocates VIBHU BAKHRU, J. (ORAL) 1. The Revenue has filed the present appeal impugning an order dated 02.01.2024 passed by the learned Income Tax Appellate Tribunal (hereafter the ITAT) in ITA No. 7805/DEL/2019 c .....

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..... Act, 1961 (hereafter the Act). The AO had disallowed a part of the expenditure proportionate to the average investments made by the assessee on the assumption that the investments were made for yielding income that was not chargeable to tax. 3. It is the assessee's case that there could be no disallowance of expenditure for the reason that no part of its income was treated as exempt from the cha .....

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..... the addition of Rs.6,13,17,433/- on account of disallowance under section 14A of the Act, ignoring the fact that Act is very clear & unambiguous in the issue of disallowance under section 14A even if no exempt income is earned by the Assessee? 2.3 Whether on the facts and circumstances of the case, the order passed by Ld. ITAT is perverse in law as well as on facts in respect of the items refer .....

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..... , it is hereby clarified that notwithstanding anything to the contrary contained in this Act, the provisions of this section shall apply and shall be deemed to have always applied in a case where the income, not forming part of the total income under this Act, has not accrued or arisen or has not been received during the previous year relevant to an assessment year and the expenditure has been inc .....

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..... - that the explanation to Section 14A of the Act as introduced by the Finance Act, 2022 was applicable retrospectively, the same would have no application in the given facts. 11. In view of the above, we do not find that any substantial question of law arises for our consideration. 12. The appeal is, accordingly, dismissed. Pending applications, if any, stand disposed of.
Case laws, Decision .....

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