9911796707
TMI Blog2024 (10) TMI 1207X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 1371 - DELHI HIGH COURT ] Concededly, the said explanation is applicable prospectively and thus, would be inapplicable to the assessment year in question (AY 2016-17). It is relevant to note that this Court had in Era Infrastucture (India) Ltd. [ 2022 (7) TMI 1093 - DELHI HIGH COURT ] held that the explanation would be applicable only prospectively and would have no retrospective operation. In the given facts of this case, where the assessee does not have any exempt income in the relevant assessment year, there is no allegation that any expenditure has been incurred on account of exempt income that would accrue or arise in future years. Thus, even if we accept which we do not that the explanation to Section 14A of the Act as introduced b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art 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 charge of income tax; therefore, disallowance of expenditure incurred for earning exempt income (as posited under Section 14A of the Act) did not arise. 4. The assessee preferred an appeal before the CIT(A) and the addition of Rs. 6,13,17,433/- on account of disallowance of expenditure under Section 14A of the Act was deleted on the ground that the assessee did not have any income which was exempt from tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said explanation is set out below: Explanation . For the removal of doubts, 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 incurred during the said previous year in relation to such income not forming part of the total income. 9. Concededly, the said explanation is applicable prospectively and thus, would be inapplicable to the assessment year in question (AY 2016-17). It is relevant to note that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
