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July 2014

Business expenditure: Disallowance u/s. 14A: Where assessee did not earn any exempt income in the relevant year the provisions of section 14A are not applicable and disallowance u/s. 14A could not be made:

By K.B.Bhujle Advocate
Reading Time 1 mins
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CIT vs. M/s. Shivam Motors (P) Ltd.(All); ITA No. 88 of 2014 dated 05-05-2014: A. Y. 2008-09):

Held:
In the absence of dividend (i.e., exempt income) the provisions of section 14A of the Act is not applicable and accordingly, there can be no disallowance u/s. 14A of the Act.

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