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“disallowance u/s 14A”

DisallowancesSection 14ASection 14A2,938 judgments

The decision most relied on for disallowance u/s 14A is CIT v. Corrtech Energy (P.) Ltd. (223 Taxmann 130), cited in 579 judgments on BharatTax.

Leading authorities on disallowance u/s 14A

CIT v. Corrtech Energy (P.) Ltd.
223 Taxmann 130 · 2014 · High Court
579
citing judgments

Disallowance under Section 14A read with Rule 8D is not warranted if the assessee has not earned any exempt income in the relevant assessment year.

CIT v. Gem Plus Jewellery India Ltd.
330 ITR 175 · 2011 · High Court
207
citing judgments

Disallowances made under various sections, such as for PF/ESIC contributions, result in an increase in business profits, and these enhanced profits are eligible for deduction under Sections 10A and 10AA. Similarly, gains from foreign exchange fluctuations directly linked to export sales are also eligible for deduction under Section 10A.

Cargo Motors (P.) Ltd. v. DCIT
145 Taxmann.com 641 · 2022 · High Court
46
citing judgments

The disallowance under Section 14A read with Rule 8D, particularly Rule 8D(iii) for administrative expenses, should only consider investments that have actually yielded exempt income during the relevant assessment year. Section 14A empowers the Assessing Officer to determine expenditure related to income not forming part of total income.

Sobha Developers Ltd. v. DCIT
125 Taxmann.com 72 · 2021 · High Court
44
citing judgments

Disallowance under section 14A is a notional disallowance and cannot be added back while computing Book Profits under section 115JB for Minimum Alternate Tax purposes.

Tata Industries Ltd. v. ITO
181 TTJ 600 · 2016 · ITAT
29
citing judgments

Disallowance under Section 14A cannot exceed the exempt income earned by the assessee. Even if interest expenditure is considered, it cannot be solely attributed to earning exempt dividend income as investors also consider potential capital gains.

PCIT v. J.J. Glastronics (P.) Ltd.
139 Taxmann.com 375 · 2022 · High Court
28
citing judgments

Additions made under Section 14A of the Income-tax Act, read with Rule 8D, cannot be considered for computing book profit under Section 115JB of the Act.

M/s.Bajaj Allianz General Insurance Co. Ltd. v. ACIT
38 DTR 282 · 2010 · Reported
26
citing judgments

Section 14A of the Income-tax Act is not applicable to insurance businesses governed by specific provisions of Section 44 and Schedule 1. Profit on sale of investments by insurance companies is not taxable, especially after the deletion of sub-rule (b) of Rule 5 of the First Schedule.

PCIT v. Dipesh Lalchand Shah
143 Taxmann.com 419 · 2022 · High Court
18
citing judgments

Disallowance under section 14A cannot be made if the assessee has not earned any exempt income in the relevant assessment year. This applies even if the assessee has made investments in shares or has income from a partnership that is negative.

Judgments citing disallowance u/s 14A

ACIT, Anand Circle, Anand vs. National Dairy Development Board, Anand

In the result the appeal filed assessee for the Asst

ITA 757/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad02 May 2025AY 2012-13
Section 115JSection 143(3)Section 14ASection 154

order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter ... that in view of decision on ground No.3 & 4, the ground regarding increasing the book profit u/s 115JB of the Act by disallowance u/s 14A of the Act Rs.2,39,18,818/- becomes academic without deciding the issue on merit? 9. The core issue is whether the omission to apply

ACIT, Anand Circle, Anand vs. National Dairy Development Board, Anand

In the result the appeal filed assessee for the Asst

ITA 756/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad02 May 2025AY 2012-13
Section 115JSection 143(3)Section 14ASection 154

order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter ... that in view of decision on ground No.3 & 4, the ground regarding increasing the book profit u/s 115JB of the Act by disallowance u/s 14A of the Act Rs.2,39,18,818/- becomes academic without deciding the issue on merit? 9. The core issue is whether the omission to apply

ACIT, Anand Circle, Anand vs. National Dairy Development Board, Anand

In the result the appeal filed assessee for the Asst

ITA 755/AHD/2023[2011-12]Status: DisposedITAT Ahmedabad02 May 2025AY 2011-12
Section 115JSection 143(3)Section 14ASection 154

order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter ... order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter

ACIT, Anand Circle, Anand vs. National Dairy Development Board, Anand

In the result the appeal filed assessee for the Asst

ITA 734/AHD/2023[2010-11]Status: DisposedITAT Ahmedabad02 May 2025AY 2010-11
Section 115JSection 143(3)Section 14ASection 154

order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter ... that in view of decision on ground No.3 & 4, the ground regarding increasing the book profit u/s 115JB of the Act by disallowance u/s 14A of the Act Rs.2,39,18,818/- becomes academic without deciding the issue on merit? 9. The core issue is whether the omission to apply

ACIT, Anand Circle, Anand vs. National Dairy Development Board, Anand

In the result the appeal filed assessee for the Asst

ITA 733/AHD/2023[2010-11]Status: DisposedITAT Ahmedabad02 May 2025AY 2010-11
Section 115JSection 143(3)Section 14ASection 154

order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter ... that in view of decision on ground No.3 & 4, the ground regarding increasing the book profit u/s 115JB of the Act by disallowance u/s 14A of the Act Rs.2,39,18,818/- becomes academic without deciding the issue on merit? 9. The core issue is whether the omission to apply

Assistant Commissioner of Income Tax, Anand Circle, Anand vs. National Dairy Development Board, Anand

In the result the appeal filed assessee for the Asst

ITA 1059/AHD/2023[2013-14]Status: DisposedITAT Ahmedabad02 May 2025AY 2013-14
Section 115JSection 143(3)Section 14ASection 154

order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter ... that in view of decision on ground No.3 & 4, the ground regarding increasing the book profit u/s 115JB of the Act by disallowance u/s 14A of the Act Rs.2,39,18,818/- becomes academic without deciding the issue on merit? 9. The core issue is whether the omission to apply

National Dairy Development Board, Anand vs. The Dy.CIT., Anand Circle, Anand

In the result the appeal filed assessee for the Asst

ITA 1052/AHD/2023[2013-14]Status: DisposedITAT Ahmedabad02 May 2025AY 2013-14
Section 115JSection 143(3)Section 14ASection 154

order, Ld CIT[A] allowed the assessee appeal by observing as follows: “2. GROUND No.2:- The AO erred in increasing the profit by disallowance u/s 14A of the Act Rs.2,30,15,007/- without appreciating that provisions of section 14A apply only to the computation of income under chapter ... that in view of decision on ground No.3 & 4, the ground regarding increasing the book profit u/s 115JB of the Act by disallowance u/s 14A of the Act Rs.2,39,18,818/- becomes academic without deciding the issue on merit? 9. The core issue is whether the omission to apply

DCIT 3(2)(1), Mumbai vs. Jovial Investment and Trading Company Private Limited, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 5025/MUM/2024[2017-18]Status: DisposedITAT Mumbai02 May 2025AY 2017-18

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Prashant Barate, Sr.DR
Section 147Section 148Section 14ASection 250Section 68Section 69C

Disallowed Delayed Payment Charges of KRC 1,012 1,012 Total 2,04,92,837 (1,97,05,519) Less: Disallowance u/s 14A 7,87,317 Total Expenses claimed (7,87,317) 0 12. Therefore, having perused the aforesaid statement along with the computation of total income for the year

Ashishkumar Shashikant Doshi, Palanpur vs. The Dy.CIT, Circle Gandhinagar, Gandhinagar

In the result, the appeal of the assessee is partly allowed

ITA 1399/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad01 May 2025AY 2016-17

Bench: Dr. B.R.R. Kumarshri T.R. Senthil Kumar

For Appellant: Shri Parin S. Shah, ARFor Respondent: Shri S.K. Agal, Sr DR
Section 143(3)Section 14ASection 23(4)Section 250Section 36(1)(iii)

assessing the total income of the assessee at Rs.7,54,580/-, by making following additions/disallowances :- i. Disallowance u/s 14A of the Act - Rs.3,15,860/- ii. Disallowance of interest expenses u/s 36(1)(iii) of the Act - Rs. 54,130/- iii. Addition on account of notional rent u/s ... assessee is now in appeal before the Tribunal. 5. We have heard both the parties and perused the material available on record. Disallowance u/s 14A:- 6. The assessee has earned dividend of Rs.2,83,383/- against which the Assessing Officer made disallowance of Rs.3,15,860/-. The assessee submitted that

Apurva Natvar Parikh & Co. Pvt Ltd, Mumbai vs. The Principle Commissioner of Income Tax, Mumbai-6, Mumbai

In the result, the appeal of the assessee is

ITA 2646/MUM/2024[2018-19]Status: DisposedITAT Mumbai01 May 2025AY 2018-19

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri Madhur Agarwal, ARFor Respondent: Dr. K.R. Subhash, (CIT-DR)
Section 143(3)Section 14ASection 263

erred in confirming that there is under assessment of income on account of failure on the part of the appellant in considering the disallowance u/s 14A rwr 8D to the extent of Rs 33,07,273/- when appellant itself had disallowed amount of Rs 50,78,050/- in the return ... liable to be taxed in the impugned year. Besides, he also held that the AO did not make any enquiry w.r.t. the disallowance u/s 14A r.w. Rule 8D. According to facts on the record, the assessee was liable to addition in this regard to the extent of Rs.91.02 lakh

Shri Navinchandra N. Patel, Vadodara vs. The ACIT, Circle-1(2), Vadodara

In the result, the appeal of the assessee is allowed

ITA 869/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad30 Apr 2025AY 2012-13

Bench: Dr. B.R.R. Kumar, Vice-Ms. Suchitra Kamble

For Appellant: Shri Vipul Shah, ARFor Respondent: Shri R.N. Dzouza, CIT-DR
Section 143(3)Section 147Section 148Section 148(2)Section 14ASection 234BSection 250Section 271(1)(c)Section 45(2)Section 69

Undisclosed investment u/s 69B of the Act - Rs. 1,62,05,500/- (iii) Disallowance u/s 14A r.w.r. 8D - Rs. 7,05,466/- 4. Aggrieved by the order of the Assessing Officer, the assessee filed appeal before the Ld. CIT(A) who dismissed the appeal of the assessee and confirmed ... form of dividend u/s 10(34) of the Act. On further verification, it was seen that the assessee had not made any disallowance u/s 14A of the Act as prescribed in Rule 8D of the Income-tax Rules, 1962. As per the provisions of section 14A of the Income

DCIT CC 4(2), Mumbai vs. Shoppers Stop Limited, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 6986/MUM/2024[2021-22]Status: DisposedITAT Mumbai30 Apr 2025AY 2021-22

Bench: Smt. Beena Pillai & Smt. Renu Jauhriआयकर अपील सं./Ita No. 6985/Mum/2024 (निर्धारण वर्ा / Assessment Year :2020-21) आयकर अपील सं./Ita No. 6986/Mum/2024 (निर्धारण वर्ा / Assessment Year :2021-22) Dcit Cc 4(2), Mumbai V/S. Shoppers Stop Ltd. Room No. 420, Kautilya बिधम 5Th Floor, Umang Tower, Bhavan, Bkc, Mumbai, Malad Link Road, Malad Maharashtra-400051 (W), Mumbai, Maharashtra- 400064 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aabcs4383A Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee By: Ms. Aarti Sathe/ Ms. Aasavari Kadam रधजस्व की ओर से /Revenue By: Ms. Kavitha Kaushik

For Appellant: Ms. Aarti Sathe/ Ms. AasavariFor Respondent: Ms. Kavitha Kaushik
Section 143(3)Section 14ASection 250Section 5

facts and in the circumstances of the case, the Ld.CIT(A) has erred in deleting the disallowance u/s. 14A of the Income Tax Act, 1961 of Rs. 2,22,16,000/- by ignoring the provisions of section 14A r.w.r 8D(2) which prescribes a methodology for disallowance to be made ... with the order of Ld. CIT(A), the revenue is in appeal before the Tribunal on the following grounds. 7. Ground No. 1: Disallowance u/s 14A r.w. Rule 8D – Rs. 2,22,16,000/- 7.1 Brief facts of the issue are that Ld. AO observed that besides the business activity

DCIT CC 4(2), Mumbai vs. Shoppers Stop Limited, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 6985/MUM/2024[2020-21]Status: DisposedITAT Mumbai30 Apr 2025AY 2020-21

Bench: Smt. Beena Pillai & Smt. Renu Jauhriआयकर अपील सं./Ita No. 6985/Mum/2024 (निर्धारण वर्ा / Assessment Year :2020-21) आयकर अपील सं./Ita No. 6986/Mum/2024 (निर्धारण वर्ा / Assessment Year :2021-22) Dcit Cc 4(2), Mumbai V/S. Shoppers Stop Ltd. Room No. 420, Kautilya बिधम 5Th Floor, Umang Tower, Bhavan, Bkc, Mumbai, Malad Link Road, Malad Maharashtra-400051 (W), Mumbai, Maharashtra- 400064 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aabcs4383A Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee By: Ms. Aarti Sathe/ Ms. Aasavari Kadam रधजस्व की ओर से /Revenue By: Ms. Kavitha Kaushik

For Appellant: Ms. Aarti Sathe/ Ms. AasavariFor Respondent: Ms. Kavitha Kaushik
Section 143(3)Section 14ASection 250Section 5

facts and in the circumstances of the case, the Ld.CIT(A) has erred in deleting the disallowance u/s. 14A of the Income Tax Act, 1961 of Rs. 2,22,16,000/- by ignoring the provisions of section 14A r.w.r 8D(2) which prescribes a methodology for disallowance to be made ... with the order of Ld. CIT(A), the revenue is in appeal before the Tribunal on the following grounds. 7. Ground No. 1: Disallowance u/s 14A r.w. Rule 8D – Rs. 2,22,16,000/- 7.1 Brief facts of the issue are that Ld. AO observed that besides the business activity

Icici Bank Ltd, Mumbai vs. Addl CIT RG 3 (1), Mumbai

ITA 4249/MUM/2014[2008-09]Status: DisposedITAT Mumbai30 Apr 2025AY 2008-09

Bench: Smt. Beena Pillai & Shri Omkareshwar Chidara

For Appellant: Arati VissanjiFor Respondent: Shri Ajay Chandra, CIT/DR
Section 10(15)Section 14ASection 250Section 36(1)(vii)Section 92C

Marked to market loss on interest rate 13,02,00,000/- derivative transaction 3 Disallowance u/s 14A r.w.r. 8D – interest 4,57,85,00,000/- portion read with exemption u/s 10(50), 10(34) and 10(35) 4 Disallowance of depreciation of leased 21,42,83,938/- assets 5 Disallowance

DCIT Cir 3(1), Mumbai vs. Icici Bank Ltd, Mumbai

ITA 4159/MUM/2014[2008-09]Status: DisposedITAT Mumbai30 Apr 2025AY 2008-09

Bench: Smt. Beena Pillai & Shri Omkareshwar Chidara

For Appellant: Arati VissanjiFor Respondent: Shri Ajay Chandra, CIT/DR
Section 10(15)Section 14ASection 250Section 36(1)(vii)Section 92C

Marked to market loss on interest rate 13,02,00,000/- derivative transaction 3 Disallowance u/s 14A r.w.r. 8D – interest 4,57,85,00,000/- portion read with exemption u/s 10(50), 10(34) and 10(35) 4 Disallowance of depreciation of leased 21,42,83,938/- assets 5 Disallowance

DCIT Circle- 1, Ltu, New Delhi vs. Mawana Sugar Ltd., New Delhi

Appeal is partly allowed as above and the appeal of the Revenue is dismissed as above

ITA 5984/DEL/2019[2016-17]Status: DisposedITAT Delhi30 Apr 2025AY 2016-17

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishra

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

No.3, 3.1, 4 & 5 of assessee's appeal in AY 2011-12 is against upholding the action of the AO in making a disallowance u/s 14A read with Rule 8D. At the outset, ld. AR of the assessee submitted that undisputedly there is no exempt income earned by the assessee ... Rs.317.47 million in the instruments which will result in tax exempt income and the assessee was asked to show cause as to why disallowance u/s 14A should not be made. In this regard, assessee vide letter dated 19.12.2014 objected to any disallowance u/s 14A read with Rule 8D on various

Infobeans Technologies Limited, Indore, M.P vs. The Principal Commissioner of Income-Tax, Indore - 1, Indore, M.P

In the result, the appeal filed by the assessee is dismissed being devoid of

ITA 371/IND/2024[2018-19]Status: DisposedITAT Indore29 Apr 2025AY 2018-19

Bench: Sh. Bhagirath Mal Biyani & Sh. Udayan Dasgupta

For Appellant: S/Sh.SN Agrawal & Ritesh Jain, ARs
Section 143(3)Section 14ASection 14A(2)Section 154Section 263

Thereafter, the ld. PCIT assumed jurisdiction u/s 263 of the Act, vide notice dated 14th February, 2024, on the issue of proposed disallowance u/s 14A, relating to the exempt income. In course of proceedings, written submissions were filed by the assessee and the ld. PCIT considering all submissions has disposed ... Commissioner, that in course of proceedings u/s 263, the assessee, sou-moto has furnished a fresh computation along with workings of disallowance u/s 14A which works out to Rs.1,34,052/-, which points to the fact that the order passed by the AO is erroneous

Nuvama Wealth Management Limited, Bandra East, Mumbai vs. Deputy Comissioner of Income Tax, Cgo Building, Mumbai

ITA 480/MUM/2025[2018-19]Status: DisposedITAT Mumbai28 Apr 2025AY 2018-19

Bench: Shri Saktijit Dey, Vp & Ms Padmavathy S, Am

Section 1Section 115JSection 14A

assessee has made a suo-motu disallowance of Rs.50,91,063/- as per below workings: Working of suo-moto disallowance u/s 14A of I.T Act made in the computation of total income Particulars Employee Cost Auditor Remuneration Communication Computer Exp Computer Software Electricity Exp Office Expenses. Printing and Stationery Rent ... assessee was requested to show cause why the above issue of huge investments and exempt income, cannot be considered for disallowance u/s 14A of I.T. Act and added to the income of the company for AY 2018-19.” 7. The assessee submitted that except expenses considered by the assessee

Nuvama Wealth Management Limited, Bandra East, Mumbai vs. Deputy Comissioner of Income Tax, Cgo Building, Mumbai

ITA 479/MUM/2025[2016-17]Status: DisposedITAT Mumbai28 Apr 2025AY 2016-17

Bench: Shri Saktijit Dey, Vp & Ms Padmavathy S, Am

For Appellant: Shri Leyaqat Ali Aafaqui- Sr. DR
Section 115JSection 14A

assessee has made a suo-motu disallowance of Rs. 50,91,063/- as per below workings: Working of suo-moto disallowance u/s 14A of I.T Act made in the computation of total income Particulars Expenses as Proportionate Basis of allocation per P&LA/c expenses Employee Cost ... assessee was requested to show cause why the above issue of huge investments and exempt income, cannot be considered for disallowance u/s 14A of I.T. Act and added to the income of the company for AY 2018-19.” 7. The assessee submitted that except expenses considered by the assessee

N.K. Industries Ltd., Ahmedabad vs. The Dy.CIT, Circle-3(1)(1), Ahmedabad

In the result, the appeal of the assessee on this ground is allowed

ITA 448/AHD/2023[2013-14]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2013-14

Bench: Dr. B.R.R. Kumarms. Suchitra Kamble

For Appellant: NK Industries Ltd (Cross Appeals)
Section 250

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER