9911796707
TMI Blog2022 (11) TMI 882X X X X Extracts X X X X X X X X Extracts X X X X ..... endment made by the Finance Act, 2022 to section 14A by inserting a non obstante clause and explanation will take effect from 01.04.2022 and cannot be presumed to have retrospective effect. Therefore, in A.Y. 2014-15 no disallowance could be made under section 14A if no exempt income was earned by the assessee. Appeal of assessee allowed. - ITA No. 1628/MUM/2022 - - - Dated:- 15-11-2022 - SHR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. 2. The learned Assessing Officer grossly erred in involving the provision of section 14A of the Income Tax Act, 1961 r.w Rule 8D, thereby making disallowance of ₹ 76,22,179/- to the total income of the assessee, without appreciating the fact that the said provisions are not applicable in case of the appellant as it has not erred any exempt income during impugned assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee submitted that, the assessee is holding strategic investment and has not earned any exempt income. Therefore, disallowance under section 14A cannot be made. The learned Assessing Officer rejected the argument of the assessee. He held that as assessee has made investment in equity shares which are likely to result in exempt income and assessee has also claimed expenses during the year. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s retrospectively. 04. The assessee is aggrieved with that appellate order and has preferred appeal before us. The learned authorized representative vehemently submitted that during the year assessee has not on earned any exempt income and amendment made by The Finance Act, 2022 will take effect from 01.04.2022 and cannot be presumed to have retrospective effect. For this he relied on the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance could be made under section 14A if no exempt income was earned by the assessee. 07. In view of this, the Ground No. 2 of the appeal is allowed. Assessing Officer is directed to delete the disallowance under section 14A of the Act of ₹76,22,179/-. 08. In view of this appeal of the assessee is allowed. Order pronounced in the open court on 15.11.2022. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
