PCIT v. Caraf Builders & Construction (P) Ltd.

101 Taxmann.com 167High Court2019#1080 most cited

What is PCIT v. Caraf Builders & Construction (P) Ltd. authority for?

Disallowance of expenditure under section 14A of the Income-tax Act cannot exceed the amount of exempt income earned by the assessee in the relevant assessment year.

101

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2019 to 2026.

Also referred to as

PCIT v. Caraf Builders & Construction (P) Ltd. · Caraf Builders · 101 Taxmann.com 167 · section 14A disallowance · exempt income expenditure · Rule 8D disallowance · disallowance limit · maximum disallowance under section 14A · expenditure related to exempt income · section 14A of the Income Tax Act

Sections most often in play

Section 1961Section 14ASection 143(3)Section 1963Section 37(1)Section 8DSection 143(3) of the Income Tax ActSection 14A of the Income Tax Act

Issues it is cited on

section 8dsection 92b(1)section 92(1)legal expensesdividend distribution taxsection 148(2)disallowance of interest expenditureretrospective amendmentsection 14a(2)section 115jb(2)ddtdisallowance under section 14a

Judgments citing PCIT v. Caraf Builders & Construction (P) Ltd.

Govardhandas B.Shah (HUF), Jalgaon vs. Income-Tax Officer, Ward - 2(4), Jalgaon

In the result, the appeal of the assessee is allowed

ITA 1288/PUN/2018[2013-14]Status: DisposedITAT Pune07 Mar 2019AY 2013-14

Bench: Shri Anil Chaturvedi, Am & Shri Vikas Awasthy, Jm

For Appellant: Smt. Deepa KhareFor Respondent: Shri Rajesh Gawali
Section 143(3)Section 14A

…of Punjab and Haryana High Court, Revenue filed S.L.P. before the Hon’ble Apex Court and the S.L.P. was dismissed by the Hon’ble Apex Court. We further find that Hon’ble Delhi High Court in the case of PCIT Vs Caraf Builders & Construction (P) Ltd., (2019) 101 Taxmann.com 167 (Del) after considering the decisions of Hon’ble Apex Court in the case of Maxopp Investment Ltd. Vs. CIT (2018) 402 ITR 640, Cheminvest Vs. CIT (2015) 378 ITR 33 and other decisions has held that disallowance u/s 14A cannot exceed exempt income of the relevant year. In the present case, since assessee has not earned any exempt income…