https://www.taxtmi.com/caselaws?id=470400 Section 14A read with Rule 8D requires exempt income to have accrued, arisen, been received, or been claimed during the relevant year before related expenditure may be disallowed. Investments in shares and interest expenditure alone do not justify disallowance where no exempt income exists, as this would improperly disallow expenditure linked to possible future exempt income and conflict with the matching concept. The Explanation inserted into section 14A by the Finance Act, 2022 is described as prospective and therefore does not apply to the assessment year considered. Accordingly, the section 14A disallowance is not sustainable in the absence of exempt income. en-us Thu, 20 Mar 2025 00:00:00 +0530 Sat, 25 Jul 2026 15:29:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470400 Section 14A read with Rule 8D requires exempt income to have accrued, arisen, been received, or been claimed during the relevant year before related expenditure may be disallowed. Investments in shares and interest expenditure alone do not justify disallowance where no exempt income exists, as this would improperly disallow expenditure linked to possible future exempt income and conflict with the matching concept. The Explanation inserted into section 14A by the Finance Act, 2022 is described as prospective and therefore does not apply to the assessment year considered. Accordingly, the section 14A disallowance is not sustainable in the absence of exempt income. Case-Laws Income Tax Thu, 20 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470400