https://www.taxtmi.com/caselaws?id=757667 The Delhi HC upheld ITAT's decision restricting disallowance under Section 14A to the extent of exempt income earned during the year. The court held that Section 14A requires apportionment of expenditure relating to non-taxable income, and expenditure can only be disallowed if exempt income actually exists in the relevant year. The court emphasized that expenditure incurred for earning exempt income cannot be set off against taxable income to avoid dual benefits. Regarding the Explanation to Section 14A, the HC clarified it applies prospectively from assessment year 2022-23 onwards, not to the years in question. en-us Wed, 07 Aug 2024 00:00:00 +0530 Mon, 02 Mar 2026 17:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757667 The Delhi HC upheld ITAT's decision restricting disallowance under Section 14A to the extent of exempt income earned during the year. The court held that Section 14A requires apportionment of expenditure relating to non-taxable income, and expenditure can only be disallowed if exempt income actually exists in the relevant year. The court emphasized that expenditure incurred for earning exempt income cannot be set off against taxable income to avoid dual benefits. Regarding the Explanation to Section 14A, the HC clarified it applies prospectively from assessment year 2022-23 onwards, not to the years in question. Case-Laws Income Tax Wed, 07 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757667