Clarification regarding restriction on re-opening of completed assessments on account of provisions of section 14A

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..... provisions of section 14A Circular : No. 11/2001, dated 23-7-2001 . 1. The Finance Act, 2001 has inserted section 14A in the Income-tax Act, 1961 wherein it was specifically provided that no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of total income under the Act. The amendment takes effect from 1-4-196 .....

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..... g avoidable litigation. 4. The Board have considered this matter and hereby directs that the assessments where the proceedings have become final before the first day of April, 2001 should not be re-opened under section 147 of the Act to disallow expenditure incurred to earn exempt income by applying the provisions of newly inserted section 14A of the Act . Circular : No. 11/2001, dated .....

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