2024 (8) TMI 631 - AT - Income Tax

Disallowance u/s.14A r.w.r. 8D - assessee did not earn any exempt income - HELD THAT - Since the assessee has not earned any exempt income during the year under consideration, the disallowance u/s. 14A of the Act is not required to be made as per the decision of Era Infrastructure (India) Ltd 2022 (7) TMI 1093 - DELHI HIGH COURT . Respectfully following the said decision, we set aside the order passed by the CIT(A) and direct the AO to delete the disallowance made u/s. 14A of the Act during the year under consideration. Appeal filed by the assessee is allowed.

Summary

The Appellate Tribunal ITAT Mumbai allowed the appeal of the assessee challenging the disallowance of Rs. 26.83 lakhs made under section 14A of the Income Tax Act, 1961. The Tribunal directed the AO to delete the disallowance as the assessee did not earn any exempt income during the relevant year, citing a decision of the Hon'ble Delhi High Court.