2024 (1) TMI 1506 - HC - Income Tax

Amendment to s.14A by Finance Act, 2022 not retrospective; no substantial question of law in appeal

HC upheld ITAT's view that the appeal raises no substantial question of law concerning whether the Finance Act, 2022 amendment to s.14A operates ... Addition u/s 14A - scope of amendment made by the Finance Act, 2022 to Section 14A - Amendment is retrospective or prospective in nature - ITAT while dealing with the aforesaid question has taken note of the judgment rendered by this Court in Pr. CIT vs. M/s Era Infrastructure (India) Ltd. [2022 (7) TMI 1093 - DELHI HIGH COURT]. HELD THAT:- As in view expressed by the Court in Era Infrastructure, we find that the appeal raises no substantial question of law The sole question in the appeal concerned additions made under 'Section 14A' of the Income Tax Act, 1961. The ITAT had noted the judgment in Pr. CIT vs. M/s Era Infrastructure (India) Ltd. [2022 SCC Online Del 2157], and the High Court followed that decision. Applying the rationale in Era Infrastructure, the Court held that the appeal 'raises no substantial question of law.' An exemption application (CM APPL. 1737/2024) was allowed subject to all just exceptions and disposed of; the main appeal and the related application were dismissed on the basis that the issues were covered by the precedent in Era Infrastructure. The decision turns on the application of precedent to Section 14A additions and the absence of any substantial question of law for reconsideration.