“disallowance under section 14A”

DisallowancesSection 14ASection 14A2,288 judgments

The decision most relied on for disallowance under section 14A is CIT v. Reliance Petroproducts Pvt. Ltd. (322 ITR 158), cited in 2,228 judgments on BharatTax.

Leading authorities on disallowance under section 14A

CIT v. Reliance Petroproducts Pvt. Ltd.

322 ITR 158 · 2010 · Supreme Court

2,228

citing judgments

Penalty under Section 271(1)(c) for furnishing inaccurate particulars or concealment of income is not automatically leviable if the assessee has made a full disclosure of all particulars and the addition or disallowance arises from a difference of opinion.

CIT v. Reliance Utilities & Power Ltd.

313 ITR 340 · 2009 · High Court

2,118

citing judgments

Where an assessee claims that investments were made out of own funds, interest disallowance under Section 14A read with Rule 8D may not apply if the assessee demonstrates the availability of sufficient interest-free funds to cover such investments.

Maxopp Investment Ltd. v. CIT

402 ITR 640 · 2018 · Supreme Court

1,596

citing judgments

Disallowance under Section 14A is not automatic and requires the Assessing Officer to record satisfaction before applying Rule 8D. Only investments yielding exempt income are considered for disallowance, irrespective of their strategic nature.

Cheminvest Ltd. v. CIT

378 ITR 33 · 2015 · High Court

1,569

citing judgments

A disallowance under Section 14A of the Income-tax Act, 1961, for expenditure incurred in relation to exempt income cannot be made if the assessee has not earned any exempt income during the relevant previous year.

S.A. Builders Ltd. v. CIT

288 ITR 1 · 2007 · Supreme Court

1,484

citing judgments

Interest paid on borrowed funds cannot be disallowed merely because the assessee made interest-free advances, provided those advances were made for business purposes and commercial expediency. The Revenue cannot dictate a businessman's commercial decisions, but the assessee bears the onus to prove the business expediency.

CIT v. HDFC Bank Ltd.

366 ITR 505 · 2014 · High Court

1,261

citing judgments

When an assessee possesses interest-free funds sufficient to cover investments yielding tax-free income, it is presumed that such investments were made from these interest-free funds, precluding disallowance of interest expenditure under Section 14A.

Godrej & Boyce Mfg. Co. Ltd. v. DCIT

328 ITR 81 · 2010 · High Court

1,183

citing judgments

Rule 8D, for computing disallowance under Section 14A for expenses related to exempt income, applies from Assessment Year 2008-09 onwards; for prior years, a reasonable disallowance must be made. The disallowance under Section 14A cannot exceed the actual exempt income earned.

ACIT v. Vireet Investment Pvt. Ltd.

165 ITD 27 · 2017 · ITAT

882

citing judgments

No disallowance under section 14A can be made while computing book profits under section 115JB unless the expenditure is debited to the profit and loss account and satisfies clause (f) of Explanation 1 to section 115JB(2).

Judgments citing disallowance under section 14A

Dy Commissioner of Income Tax -8(3)(1), Mumbai vs. M/S Welspun Global Brands Ltd, Mumbai

The appeal of the revenue is partly allowed

ITA 2184/MUM/2022[2012-13]Status: DisposedITAT Mumbai17 Mar 2025AY 2012-13

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Appellant: 2.1. Whether on the facts and circumstances of the case and in law, the LdFor Respondent: Shri Asif Karmali, Sr. DR

Section 14ASection 92BSection 92C

revenue is in appeal against the order of CIT(A) before the Tribunal. 4 ITA No.2184/Mum/2022- M/s Welspun Global Brands Ltd. Disallowance under section 14A – Ground No.1.1 & 1.2 3. The AO during the course of assessment noticed that the assessee has earned dividend income of Rs.6 ... claimed the same as exempt. In this regard the AO issued a show notice to the assessee as to why the disallowance under section 14A r.w.r 8D cannot be made. The assessee submitted that the investment of the assessee is with the Foreign AEs and since the income earned from

Assistant Commissioner of Income Tax Circle- 3(4) Mumbai, Mumbai vs. The Shipping Corporation of India Limited, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 1971/MUM/2024[2018-2019]Status: DisposedITAT Mumbai11 Mar 2025AY 2018-2019

Bench: Shri Amarjit Singhshri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/w Ms. Samiksha SaveFor Respondent: Shri Himanshu Joshi - Sr. DR

Section 142(1)Section 143(2)Section 143(3)Section 144BSection 250Section 28Section 43C

assessee was asked ITAs No.1751 & 1971/Mum/2024 (A.Ys. 2018-19) 16 to furnish the opening and closing balance of monthly investments and working of disallowance under section 14A of the Act. It was observed that the assessee has not recorded any expenditure for earning exempt income. Accordingly, the assessee was asked ... show cause why the disallowance under section 14A of the Act should not be worked out as per the provisions of Rule 8D of the Rules. In response, the assessee submitted that it is a shipping company and has opted for tonnage tax scheme as per Chapter

The Shipping Corporation of India, Mumbai vs. Dy Comm of Income Tax-3(4), Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 1751/MUM/2024[2018-19]Status: DisposedITAT Mumbai11 Mar 2025AY 2018-19

Bench: Shri Amarjit Singhshri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/w Ms. Samiksha SaveFor Respondent: Shri Himanshu Joshi - Sr. DR

Section 142(1)Section 143(2)Section 143(3)Section 144BSection 250Section 28Section 43C

record, are: During the assessment proceedings, the assessee was asked to furnish the opening and closing balance of monthly investments and working of disallowance under section 14A of the Act. It was observed that the assessee has not recorded any expenditure for earning exempt income. Accordingly, the assessee was asked ... show cause why the disallowance under section 14A of the Act should not be worked out as per the provisions of Rule 8D of the Rules. In response, the assessee submitted that it is a shipping company and has opted for tonnage tax scheme as per Chapter

DCIT 3(2)(2), Mumbai vs. The New India Assurance Co. Ltd., Mumbai

The appeal of the assessee is partly allowed and the appeal of the

ITA 3150/MUM/2018[2014-15]Status: DisposedITAT Mumbai11 Mar 2025AY 2014-15

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

Section 10(38)Section 115JSection 143(3)Section 14ASection 37

coordinate bench, we see no infirmity in the decision of the CIT(A). Accordingly ground raised by the revenue is dismissed. Ground No.3 – Disallowance under section 14A 18. The assessee for the year under consideration has earned an exempt income of Rs.1317.75 crores and the AO by invoking section 14A ... ITA.No. 5013/Mum/2015 dated 28.03.2018, held as under:- “15. The issue raised in ground No.3 is against the deletion of disallowance under section 14A read with rule 8D without appreciating the fact that the assessee was given the benefit of exemption under section

The New India Assurance Co. Ltd., Mumbai vs. ACIT - 3(2)(2), Mumbai

The appeal of the assessee is partly allowed and the appeal of the

ITA 2594/MUM/2018[2014-15]Status: DisposedITAT Mumbai11 Mar 2025AY 2014-15

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Farooq Irani, ARFor Respondent: Shri Vivek Perampurna, CIT-DR

Section 10(38)Section 115JSection 143(3)Section 14ASection 37

Consolidated Infrastructure Compamy Pvt Ltd, Mumbai vs. ACIT, Circle 6(1)(1), Mumbai

ITA 462/MUM/2025[2017-18]Status: DisposedITAT Mumbai10 Mar 2025AY 2017-18

Bench: Smt. Beena Pillai & Shri Girish Agrawal

For Appellant: Shri Fenil Bhatt, AdvocateFor Respondent: Shri Mahesh Pamnani, Sr. DR

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144(2)Section 14ASection 14A(2)

exempt income for the purpose of calculating disallowance under Rule 8D(2) of the Rules by the AO, (e) without restricting the disallowance under Section 14A of the Act to exempt income earned by the Assessee by the AO. The Appellant prays that the addition under section 14A ... above, the Appellant prays that only those investments that have yielded exempted income ought to be considered for the purpose of making a disallowance under section 14A of the Act. 3. Without prejudice to the above, the Appellant prays that the disallowance be restricted to exempt income earned

Indianoil Adani Ventures Limited) (Formerly Known As Indian Oiltanking Ltd, Mumbai vs. Asstt. Comm. of Income Tax Circle 15(1)(2), Mumbai

The appeal of the assessee is partly allowed

ITA 6711/MUM/2024[2013-14]Status: DisposedITAT Mumbai10 Mar 2025AY 2013-14

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Ms. Vasanti Patel,ARFor Respondent: Shri Mahesh Pamnani (Sr. DR)

Section 143(3)Section 14A

erred in upholding the disallowance made by learned AO without appreciating the fact that investments were made out of own funds therefore disallowance under section 14A cannot be warranted. 6. 10. 11. Page |3 ITA No. 6711/Mum/2024 AY. 2013-14 Indian Oil Adani Ventures Limited Without prejudice to Grounds ... held that investments which do not yield dividend income should not be considered for computing average value of Investments while computing disallowance under Section 14A of the Act read with Rule 8D of the Rules. On fact and circumstances of the case, the learned CIT(A), NFAC has erred

Assistant Commissioner of Income Tax, Mumbai vs. Indiabulls Real Estatelimited, Gurgaon

Appeal is dismissed

ITA 2179/MUM/2024[2018-19]Status: DisposedITAT Mumbai10 Mar 2025AY 2018-19

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarthe Assistant Commissioner Of V/S. M/S Indiabulls Real Income Tax, Central Circle – 6(4), बनाम Estate Limited, M-62 & Mumbai, 63, 1Stfloor, Connaught Vijay Kumar Singh, Deputy Place, New Delhi – 110 001 Commissioner Of Income Tax, Central Circle 6(4), Mumbai, Room No. 453, 4 Th Floor, Kautilya Bhavan, G Block, Bkc, Bandra(E), Mumbai 400 051, Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aabci5194F Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Shri K. Gopal & Shri Om Kandalkar,ARsFor Respondent: Mr. R.A. Dhyani (CIT DR)

Section 143(3)Section 14ASection 37(1)

case of M/s. Nirved Traders Pvt. Ltd. (ITA No. 149 of 2017) in their decision dated 23.04.2019 approved the claim that the disallowance under section 14A was to be restricted to the tax-exempt income earned during the year. Accordingly, the ld.CIT(A) held that the disallowance made

Shri Jitendrasinh Bharatsinh Chauhan, Silvassa vs. ITO, Ward-Silvassa, Silvassa

In the result, the appeal of the assessee is allowed for statistical

ITA 969/SRT/2024[2018-19`]Status: DisposedITAT Surat07 Mar 2025

Bench: Shri Siddhartha Nautiyal & Shri Bijayananda Pruseth

For Appellant: Shri Rajesh Upadhyay, A.RFor Respondent: Shri Mukesh Jain, Sr. DR

Section 115BSection 14ASection 250(6)Section 68

income of the assessee under Section 68 of the Act. Further, the Assessing Officer also made disallowance under Section 14A amounting to Rs. 1,24,039/- to the income of the assessee. 4. In appeal, Ld. CIT(A) issued several notices of hearing but none appeared on behalf

Prakashchand Jain, Chennai vs. DCIT, CC2(3), Chennai

In the result, appeal filed by the assessee is allowed

ITA 68/CHNY/2024[2017-18]Status: DisposedITAT Chennai07 Mar 2025AY 2017-18

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita No.68/Chny/2024 िनधा रण वष /Assessment Year: 2017-18 Prakashchand Jain, The Dy. Commissioner Of V. 39 & 40 Bakers Street, Income Tax, Choolai, Chennai – 600 112. Central Circle-2(3), Chennai. [Pan: Ahhpp 1690D] (अपीलाथ$/Appellant) (%&थ$/Respondent) अपीलाथ$कीओरसे/ Appellant By : Mr. N. Arjun Raj, Advocate %&थ$कीओरसे /Respondent By Shri R. Clement Ramesh : Kumar, Cit सुनवाईकीतारीख/Date Of Hearing : 10.12.2024 घोषणाकीतारीख /Date Of Pronouncement 07.03.2025 :

For Appellant: Mr. N. Arjun Raj, Advocate

Section 132Section 153Section 153ASection 270A

assessment order framed by Respondent No.1 is in respect of assessment order framed by Respondent No.1 is in respect of disallowance under secti disallowance under section 14A of the Act. The Petitioner has on 14A of the Act. The Petitioner has made a disallowance of Rs.3,20,14,010/ made ... used the same details to arrive at different conclusion different conclusions i.e. differing quantum of disallowances under s i.e. differing quantum of disallowances under Section 14A of the Act. This by no stretch of imagination can be Section 14A of the Act. This by no stretch of imagination

JCIT(OSD)-14(1)(1), Mumbai vs. Avendus Capital Pvt. Ltd., Mumbai

Appeal is allowed

ITA 404/MUM/2025[2020-21]Status: DisposedITAT Mumbai06 Mar 2025AY 2020-21

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2020-21 Jcit (Osd)-14(1)(1), M/S Avendus Capital Pvt. Ltd., Room No. 432, 4Th Floor, 901, Platina, 9Th Floor, Plot No. Vs. Aayakar Bhavan, M.K. Road, C59, Bandra Kurla Complex, Mumbai-400020. Bandra East, Mumbai-400051. Pan No.Aabcc 2404 Q Appellant Respondent

For Appellant: Mr. Ashish Mehta &For Respondent: Dr. K.R. Subhash, CIT-DR

Section 14ASection 37(1)

partnership. The in partnership/Limited liability partnership. The The contention of the assessee was that firstly, disallowance under contention of the assessee was that , disallowance under section 14A could not be made in the year where there is no could not be made in the year where there is no could ... capable of earning exempted income, forming part of the total income forming part of the total income, was liable for disallowance under r disallowance under section 14A of the A A of the Act, but the assessee did not attribute any assessee did not attribute any expenses towards activity

DCIT 3(3) (1), Mumbai vs. M/S. Shapoorji Pallonji and Co. Pvt. Ltd, Mumbai

In the result, both the appeals of the assessee are partly allowed and cross objections are dismissed

ITA 2234/MUM/2021[2015-16]Status: DisposedITAT Mumbai06 Mar 2025AY 2015-16

Bench: Shri Amarjit Singh & Shri Rahul Chaudhary

For Appellant: Shri Rajan Vora a/w Shri Nikhil Tiwari & Ms. Palak MehtaFor Respondent: Shri Ajay Chandra, CIT/DR

Section 115JSection 14ASection 36(1)(iii)Section 92C

taxmann.com 415) is squarely applicable to the facts of the case. 4. The Hon'ble CIT(A) erred in restricting the total disallowance under section 14A of the Act to Rs. 8,42,51,847 (suo-moto disallowance) without appreciating the fact that no disallowance under section 14A

DCIT 3(3) (1), Mumbai vs. M/S. Shapoorji Pallonji and Co.Pvt. Ltd, Mumbai

In the result, both the appeals of the assessee are partly allowed and cross objections are dismissed

ITA 2232/MUM/2021[2016-17]Status: DisposedITAT Mumbai06 Mar 2025AY 2016-17

Bench: Shri Amarjit Singh & Shri Rahul Chaudhary

For Appellant: Shri Rajan Vora a/w Shri Nikhil Tiwari & Ms. Palak MehtaFor Respondent: Shri Ajay Chandra, CIT/DR

Section 115JSection 14ASection 36(1)(iii)Section 92C

Shapoorji Pallonji & Company Pvt. Ltd, Mumbai vs. DCIT Cir 3(3) (1), Mumbai

In the result, both the appeals of the assessee are partly allowed and cross objections are dismissed

ITA 2027/MUM/2021[2016-17]Status: DisposedITAT Mumbai06 Mar 2025AY 2016-17

Bench: Shri Amarjit Singh & Shri Rahul Chaudhary

For Appellant: Shri Rajan Vora a/w Shri Nikhil Tiwari & Ms. Palak MehtaFor Respondent: Shri Ajay Chandra, CIT/DR

Section 115JSection 14ASection 36(1)(iii)Section 92C

Shapoorji Pallonji and Company Pvt. Ltd, Mumbai vs. DCIT Cir 3(3) (1), Mumbai

In the result, both the appeals of the assessee are partly allowed and cross objections are dismissed

ITA 2026/MUM/2021[2015-16]Status: DisposedITAT Mumbai06 Mar 2025AY 2015-16

Bench: Shri Amarjit Singh & Shri Rahul Chaudhary

For Appellant: Shri Rajan Vora a/w Shri Nikhil Tiwari & Ms. Palak MehtaFor Respondent: Shri Ajay Chandra, CIT/DR

Section 115JSection 14ASection 36(1)(iii)Section 92C

Eaton Technologies Private Limited, Pune vs. Principal Commissioner of Income Tax, Pune

In the result, the appeal filed by the assessee is allowed

ITA 1160/PUN/2024[2017-18]Status: HeardITAT Pune03 Mar 2025AY 2017-18

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Smt. Vishal KalraFor Respondent: Shri Amol Khairnar

Section 10ASection 143(2)Section 143(3)Section 14ASection 263Section 40

issue of allowance of deduction under section 10AA of the Act, including the additional deduction allowed by the FAO in respect of the disallowance under section 14A of the Act. The Assessing Officer shall examine the issue in the above stated aspects and decide the issue afresh after giving sufficient ... assessee's claim of deduction under section 10AA of the Act including the additional deduction allowed by the FAO. Needless to say, the disallowance under section 14A of the Act is not subjected to re-verification but only the deduction under section 10AA of the Act allowed on the said

ACIT, Circle, Panchkula vs. M/S Haryana Vidyut Prasaran Nigam Ltd., Panchkula

In the result, we upheld the

ITA 1458/CHANDI/2019[2008-09]Status: DisposedITAT Chandigarh28 Feb 2025AY 2008-09

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Harish Nayyar C.AFor Respondent: Shri Rohit Sharma, CIT DR

Section 10Section 143(2)Section 143(3)Section 147Section 148Section 14ASection 194ASection 36Section 40

section 36 of the Income Tax Act, 1961. iv) Whether the Ld. CIT(A) is right in law in holding that disallowance under Section 14A, of the Income Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962 was not called for as the assessee ... though the assessee has not received any dividend on this investment, the provision of Section 14A are still attracted and the amount of disallowance under section 14A comes to Rs. 77,57,69,043/-. 12. During the course of reassessment proceedings, after taking into consideration the submissions filed

Dy.CIT, Circle -7(1) (1), Mumbai vs. M/S. National Stopck Exchange of India Ltd, Mumbai

ITA 1467/MUM/2022[2006+-07]Status: DisposedITAT Mumbai28 Feb 2025

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

For Appellant: Shri J.D.Mistry, Sr. AdvocateFor Respondent: Shri Kailash C. Kanojiya, CIT DR

Section 14A

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT AND SHRI GIRISH

National Stock Exchange of India Limited, Mumbai vs. Deputy Commissioner of Income Tax, Mumbai

ITA 1094/MUM/2022[2015-16]Status: DisposedITAT Mumbai28 Feb 2025AY 2015-16

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

For Respondent: Shri J.D.Mistry, Sr. Advocate

Section 14A

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT AND SHRI GIRISH

National Stock Exchange of India Limited, Mumbai vs. Dy Commissioner of Income Tax -Circle 7(1)(1), Mumbai

ITA 1092/MUM/2022[2012-13]Status: DisposedITAT Mumbai28 Feb 2025AY 2012-13

Bench: Shri Saktijit Dey, Hon’Ble & Shri Girish Agrawal

For Respondent: Shri J.D.Mistry, Sr. Advocate

Section 14A

relation to exempt income after “having regard to the accounts of the assessee”, he can determine the amount of such expenditure for making disallowance under section 14A. The satisfaction arrived at by ld. Assessing Officer in terms of the provisions is not just a mere disagreement with the submissions made