https://www.taxtmi.com/caselaws?id=63850 The Special Bench ruled that disallowance under Section 14A of the Income Tax Act can be applied even if no exempt income is earned or received by the assessee during the relevant year. The Bench emphasized that the provision aims to disallow expenditure related to income that does not form part of the total income, irrespective of actual receipt of such income. Referring to precedents, the Bench held that expenses incurred for earning income are allowable even if no income is earned, supporting the applicability of Section 14A. Therefore, the decision favored the Revenue, affirming the disallowance of interest under Section 14A in the absence of exempt income. en-us Wed, 05 Aug 2009 00:00:00 +0530 Mon, 04 Sep 2023 10:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=63850 The Special Bench ruled that disallowance under Section 14A of the Income Tax Act can be applied even if no exempt income is earned or received by the assessee during the relevant year. The Bench emphasized that the provision aims to disallow expenditure related to income that does not form part of the total income, irrespective of actual receipt of such income. Referring to precedents, the Bench held that expenses incurred for earning income are allowable even if no income is earned, supporting the applicability of Section 14A. Therefore, the decision favored the Revenue, affirming the disallowance of interest under Section 14A in the absence of exempt income. Case-Laws Income Tax Wed, 05 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=63850