ALKYL AMINES CHEMICALS LIMITED,NAVI MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX-15(1)(1), MUMBAI

Facts

The assessee preferred an appeal against the order confirming the disallowance made by the AO under Section 14A r.w.r. 8D. The undisputed fact is that the assessee earned no exempt income during the year under consideration.

Held

The Tribunal held that Section 14A of the Act cannot be invoked when no exempt income was earned by the assessee. The additions made by the AO were directed to be deleted.

Key Issues

Whether Section 14A r.w.r 8D is applicable when the assessee has not earned any exempt income in the relevant assessment year.