https://www.taxtmi.com/caselaws?id=754376 ITAT Mumbai held that disallowance under Section 14A read with Rule 8D cannot be made in the absence of exempt income for the relevant assessment year. The tribunal ruled that the explanation to Section 14A inserted by Finance Act 2022 cannot be applied retrospectively to AY 2016-17. Following SC precedents in Reliance Industries and GVK Project cases, the tribunal found that disallowances based on presumptions of future dividend income are legally unsustainable. The CIT(A)'s order upholding the AO's disallowance was set aside as perverse and not legally tenable. en-us Tue, 18 Jun 2024 00:00:00 +0530 Fri, 21 Jun 2024 18:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754376 ITAT Mumbai held that disallowance under Section 14A read with Rule 8D cannot be made in the absence of exempt income for the relevant assessment year. The tribunal ruled that the explanation to Section 14A inserted by Finance Act 2022 cannot be applied retrospectively to AY 2016-17. Following SC precedents in Reliance Industries and GVK Project cases, the tribunal found that disallowances based on presumptions of future dividend income are legally unsustainable. The CIT(A)'s order upholding the AO's disallowance was set aside as perverse and not legally tenable. Case-Laws Income Tax Tue, 18 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754376