https://www.taxtmi.com/caselaws?id=292568 The Appellate Tribunal upheld the Ld. CIT(A)'s decision to exclude share application money from the computation of disallowance under section 14A of the Income Tax Act for the assessment year 2011-12. The Tribunal determined that share application money, until converted into shares, does not represent an investment likely to generate tax-free dividend income. Relying on precedents, the Tribunal concluded that if an investment does not aim to earn income or is incapable of producing tax-free income, no disallowance under section 14A should apply. As a result, the Tribunal dismissed the revenue's appeal, affirming the exclusion of share application money from the disallowance calculation. en-us Wed, 24 Aug 2016 00:00:00 +0530 Thu, 31 Dec 2020 13:24:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292568 The Appellate Tribunal upheld the Ld. CIT(A)'s decision to exclude share application money from the computation of disallowance under section 14A of the Income Tax Act for the assessment year 2011-12. The Tribunal determined that share application money, until converted into shares, does not represent an investment likely to generate tax-free dividend income. Relying on precedents, the Tribunal concluded that if an investment does not aim to earn income or is incapable of producing tax-free income, no disallowance under section 14A should apply. As a result, the Tribunal dismissed the revenue's appeal, affirming the exclusion of share application money from the disallowance calculation. Case-Laws Income Tax Wed, 24 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292568