https://www.taxtmi.com/caselaws?id=791987 Section 14A disallowance under Rule 8D was held unsustainable where no tax-exempt income was earned during the relevant year, because the provision does not trigger in the absence of exempt income. The Tribunal also followed binding High Court authority that the explanation inserted to section 14A operates prospectively and could not justify the disallowance for the year in question. Applying judicial hierarchy, it preferred the High Court view over a contrary tribunal decision and deleted the disallowance in favour of the assessee. en-us Wed, 13 May 2026 00:00:00 +0530 Thu, 21 May 2026 08:30:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791987 Section 14A disallowance under Rule 8D was held unsustainable where no tax-exempt income was earned during the relevant year, because the provision does not trigger in the absence of exempt income. The Tribunal also followed binding High Court authority that the explanation inserted to section 14A operates prospectively and could not justify the disallowance for the year in question. Applying judicial hierarchy, it preferred the High Court view over a contrary tribunal decision and deleted the disallowance in favour of the assessee. Case-Laws Income Tax Wed, 13 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791987