“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

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

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

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

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

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

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

DCIT, Central Circle-2(2), Pune vs. Kakade Infrastructure Private Limited, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 2275/PUN/2025[2013-14]Status: DisposedITAT Pune29 Jan 2026AY 2013-14

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita Nos.2275 & 2277/Pun/2025 निर्धारण वषा / Assessment Years: 2013-14 & 2014-15 Dcit, V Kakade Infrastructure Private Limited,20Th Floor, A Wing, Central Circle-2(2), S Pune. Marathon Futurx, N.M.Joshi Marg Lower Parel, Mumbai – 400013. Pan: Aadck5852G Appellant / Revenue Respondent / Assessee Assessee By Shri Jay Bhansali (Virtual) Revenue By Shri Amol Khairnar – Cit(Dr) Date Of Hearing 19/01/2026 Date Of Pronouncement 29/01/2026 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Filed By The Revenue Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 For The A.Y.2013-14 A.Y.2014-15 Both Dated 30.07.2025 Emanating From The Assessment Order Passed Under Section 143(3) Of The Act, Dated 28.03.2016 & 30.12.2016 Respectively. For The Sake Of Convenience, These Two

Section 143(3)Section 14ASection 250

consideration. Therefore, in view of the above decisions, since no exempt income was earned or receivable by the appellant during AY 2013-14, disallowance u/s 14A cannot be sustained. Therefore, the addition u/s 14A deserves to be and accordingly deleted. However, as held in the above decision ... taxmann.com 118/234 Taxman 761/378 ITR 33 has held that if there is no exempt income, there can be no question of making any disallowance u/s 14A of the Act. Similar view has been taken by the Hon'ble Delhi High Court in CIT v. Holcim India

Liberty Shoes Ltd, Liberty Puram G.T.Karnal Road Kutail Distt Karnal vs. PCIT Rohtak Haryana, DCIT Karnal Haryana

ITA 2206/DEL/2025[2020-21]Status: DisposedITAT Delhi29 Jan 2026AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 143(3)Section 14ASection 263

ITA No.2206/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI "A" BENCH: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER

Assistant Commissioner of Income Tax, Circle-25(1), New Delhi, Delhi vs. Techno Trexim India Pvt. Ltd., Delhi

In the result, appeal filed by the assessee is dismissed

ITA 582/DEL/2024[2016-17]Status: DisposedITAT Delhi29 Jan 2026AY 2016-17

Bench: Shris.Rifaur Rahman & Shri Yogesh Kumar Uss.

For Appellant: Shri I.P. Bansal, AdvocateFor Respondent: Shri Abhijeet Kumar, Sr.DR

Section 37

been specifically held that investment in group concerns is a business purpose) before Hon’ble ITAT as only the issue of disallowance u/s 14A was raised before Hon’ble ITAT by the department, In para 15 and 16 of the assessment order ,the AO has held that the full scheme

Techno Trexim (India) Private Limited, New Delhi vs. ACIT, Circle- 25(1), Delhi

In the result, appeal filed by the assessee is dismissed

ITA 468/DEL/2024[2016-17]Status: DisposedITAT Delhi29 Jan 2026AY 2016-17

Bench: Shris.Rifaur Rahman & Shri Yogesh Kumar Uss.

For Appellant: Shri I.P. Bansal, AdvocateFor Respondent: Shri Abhijeet Kumar, Sr.DR

Section 37

Navtech Tradelink Private Limited, Kolkata vs. ITO, Ward 2(1), Kolkata

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

ITA 2689/KOL/2025[2012-2013]Status: DisposedITAT Kolkata27 Jan 2026AY 2012-2013

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.2689/Kol/2025 Assessment Year: 2012-13 Navtech Tradelink Pvt. Ltd…………………. ……………....Appellant Lawgical Consultants, 29D, Bentinck Street, 3Rd Floor, Unit No.A, B & C, Kol-1. [Pan: Aadcn8863C] Vs. Ito, Ward-2(1), Kolkata….…..……………..………………….…..... Respondent Appearances By: Shri Ankit Jalan, Ar, Appeared On Behalf Of The Appellant. Shri Guru Bhashyam, Cit, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 22, 2026 Date Of Pronouncing The Order : January 27, 2026 आदेश / Order Per Sonjoy Sarma: The Present Appeal Filed By The Assessee Is Directed Against The Order Dated 18.09.2025 Passed By The Nfac, Delhi U/S 250 Of The Income Tax Act, 1961 (The ‘Act’) For The Assessment Year 2012-13. 2. Brief Facts Of The Case Are That The Assessee Is A Company & Is Involved In The Business Of Investment In Shares. The Assessee Had E- Filed Its Return Of Income For The A.Y. 2012-13 On 24.9.2012 Declaring An Income Of Rs.9226/-. The Case Was Selected For Scrutiny Under Cass. After Issuing The Statutory Notices, The Assessment Was Completed By Making Addition/Disallowance On The Two Issues I.E. (I)Unexplained Cash Credit U/S 68 & (Ii) Disallowance U/S 14A/Rule 8D.

Section 14ASection 250Section 68

IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant

ACIT, Mumbai vs. K Raheja Corp Private Limited, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 6083/MUM/2025[2020-21]Status: DisposedITAT Mumbai22 Jan 2026AY 2020-21

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2020-21

For Respondent: Mr. Paresh Sondagar, CA

Section 11SSection 14A

facts of the case by Whether the Ld. CIT(A) right in law and facts of the case by deleting the disallowance u/s 14A of the Income Tax Act, 1961 deleting the disallowance u/s 14A of the Income Tax Act, 1961 deleting the disallowance u/s 14A of the Income ... Rulcs. 1962 which has to be necessarily Rule 8D of the 1 T Rulcs. 1962 which has to be necessarily followed whenever a disallowance u/s 14A was to be made followed whenever a disallowance u/s 14A was to be made followed whenever a disallowance u/s 14A was to be made

ACIT., Circle-5(1), Hyderabad vs. Penna Cement Industries Limited, Hyderabad

ITA 1084/HYD/2024[2018-19]Status: DisposedITAT Hyderabad21 Jan 2026AY 2018-19

For Appellant: Shri Sourabh Soparkar, Advocate Represented by Department : Dr. Narendra Kumar NFor Respondent: Dr. Narendra Kumar Naik, CIT-DR Date of Conclusion of Hearing : 11/11/2025

Section 143(3)Section 144BSection 14ASection 68Section 80Section 801ASection 80GSection 92C

issue any dividend. In the case of HOLCIM INDIA P. LTD (ITA No. 486/2014 & ITA No. 299/2014), High Court of Delhi deleted the disallowance u/s 14A stating that the respondent-assessee, therefore, had to incur expenditure for the business in the form of investment in shares of cement companies ... statute before its amendment vide the Finance Act, 2022 w.e.f 01.04.2022, in the absence of receipt of any exempt income no disallowance u/s 14A of the Act could have been made in the hands of the assessee company. Our aforesaid view is fortified by the judgment

ACIT., Circle-5(1), Hyderabad vs. Penna Cement Industries Limited, Hyderabad

ITA 1083/HYD/2024[2017-18]Status: DisposedITAT Hyderabad21 Jan 2026AY 2017-18

Bench: Shri Manjunatha G. & Shri Ravish Sood(Hybrid Hearing) आयकर अपीलसं./I.T.A. No.1083/Hyd/2024 (निर्धारणवर्ष/ Assessment Year:2017-18) Assistant Commissioner Of Income Tax, Circle-5(1), Hyderabad. (अपीलार्थी/ Appellant) Vs. Penna Cement Limited, Hyderabad. Pan: Aabcp2290D (प्रत्यर्थी / Respondent) Industries आयकर अपीलसं./I.T.A. No.1084/Hyd/2024 (निर्धारणवर्ष/ Assessment Year:2018-19) Assistant Commissioner Of Income Tax, Circle-5(1), Hydeabad. (अपीलार्थी/ Appellant) Vs. Penna Cement Industries Limited, Hyderabad. Pan: Aabcp2290D (प्रत्यर्थी / Respondent) करदाताकाप्रतिनिधित्व/ Assessee Represented By : Shri Sourabh Soparkar, Advocate राजस्वकाप्रतिनिधित्व/ Department Represented By : Dr. Narendra Kumar Naik, Cit-Dr सुनवाईसमाप्तहोनेकीतिथि/ Date Of Conclusion Of Hearing : 11/11/2025 घोषणा की तारीख/ Date Of Pronouncement : 21/01/2026 2

Section 143(3)Section 144BSection 14ASection 68Section 80Section 801ASection 80GSection 92C

DCIT, CC-1(4), Kolkata vs. Jupiter International Limited, Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1678/KOL/2025[2014-15]Status: DisposedITAT Kolkata21 Jan 2026AY 2014-15

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyassessment Year: 2014-15 Dcit, Cc-1(4), Kolkata ………….……………………….……….……….……Appellant Vs. Jupiter International Limited..……………………………….....……...…..…..Respondent Unnayanam, 20A, Ashutosh Chowdhury Avenue, Kol-19.. [Pan: Aaacj6956B] Appearances By: Shri P. N Barnwal, Cit-Dr, Appeared On Behalf Of The Appellant. Shri Soumitra Choudhury & Nandini Sureka, Advocate, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : November 12, 2026 Date Of Pronouncing The Order : January 21, 2026 Order Per Pradip Kumar Choubey: This Appeal Filed By The Revenue Is Directed Against The Order Dated 29.10.2024 Of The National Faceless Appeal Centre [‘Cit(A)’] Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) For The Assessment Year 2014–15. 2. The Appeal Has Been Filed By The Revenue With A Delay Of 197 Days & The Revenue Has Filed A Petition For Condonation Of The Delay. After Going Over The Said Petition, We Find Sufficient Reasons Behind The Delay & Consequently, The Delay In Filing The Appeal Is Hereby Condoned & We Proceed To Dispose Of The Appeal On Merits.

Section 132Section 142(1)Section 143(2)Section 14ASection 153ASection 250Section 56(2)Section 56(2)(viib)

deduction. With regard to disallowance of Rs.4,78,76,015/- u/s 14A of the Act is concerned, the ld. AR submits that the disallowance u/s 14A should be on the basis of earning of exempt income during the relevant assessment year and the issue is covered by the recent decision ... Commissioner of Income-tax v. Shalimar Pellet Feeds Ltd. [2022] 138 taxmann.com 124 (Calcutta), wherein it 10 Jupiter International Limited was held that disallowance u/s 14A can only be applicable on those shares which have yielded exempt income. I have considered various case laws brought on record

ACIT, Chennai vs. Svaryu Energy Limited, Chennai

In the result, the appeal of the revenue stands partly allowed for statistical purposes

ITA 1491/CHNY/2025[2017-18]Status: DisposedITAT Chennai21 Jan 2026AY 2017-18

Bench: Hon’Ble Shri Inturi Rama Rao & Shri Ss Viswanethra Ravi

For Appellant: NoneFor Respondent: Mr.Bipin C.N, CIT

Section 143(3)Section 14A

made the following additions: 1. Disallowance of claim for deduction of any other amount of Rs.5,24,51,699/-. 2. Disallowance u/s 14A of Rs.36,47,631/-. 3. Credits to the account of two shell entities i.e. M/s.Refex Energy Ltd of Rs.10,52,84,000/-. 4. Unexplained investment in M/s.Avid

Svaryu Energy Limited, Chennai vs. DCIT Central 3.4, Chennai

In the result, the appeal of the revenue stands partly allowed for statistical purposes

ITA 1154/CHNY/2025[2017-18]Status: DisposedITAT Chennai21 Jan 2026AY 2017-18

Bench: Hon’Ble Shri Inturi Rama Rao & Shri Ss Viswanethra Ravi

For Appellant: NoneFor Respondent: Mr.Bipin C.N, CIT

Section 143(3)Section 14A

Arunaben Kishorkumar Mandalia, Ahmedabad vs. The Pr.CIT, Central, Ahmedabad

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

ITA 1054/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad20 Jan 2026AY 2020-21

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं./Ita Nos. 1052 To 1054/Ahd/2025 िनधा"रण वष"/Asstt. Years: 2017-18 To 2020-21 Arunaben Kishorkumar Mandalia, The Principal बनामVs 12, Ashwamegh-Iii, Commissioner Of . 132 Feet Ring Road, Income Tax (Central), Satellite, Ahmedabad. Ahmedabad-380015. Pan: Ablpm2848Q (अपीलाथ" /Appellant ( ""यथ" /Respondent) Assessee By : Shri M K Patel, With Shri Vartik Choksi, Ars Revenue By : Shri Sher Singh, Cit.Dr

For Appellant: Shri M K Patel, with Shri Vartik Choksi, ARsFor Respondent: Shri Sher Singh, CIT.DR

Section 132Section 143(3)Section 153CSection 263

earn the same. Please specify the applicability of section 14A of I.T. Act, 1961 in your case. If yes, please submit computation for disallowances u/s 14A r.w. Rule 8D. (Para 10 of notice 142(1) dt. 24/08/2022) During the year under reference, I have earned exempt income ... which can be substantiated from attached ledger [Page 169 to 170). No expenditure is claimed, hence, question of disallowance u/s 14A does not arise. 11. Details of any capital assets sold/purchased during the year along with supporting documents and computation of capital gain thereon. (Para 11 of notice

Arunaben Kishorkumar Mandalia, Ahmedabad vs. The Pr.CIT, Central, Ahmedabad

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

ITA 1053/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad20 Jan 2026AY 2018-19

For Appellant: Shri M K Patel, with Shri Vartik Choksi, ARsFor Respondent: Shri Sher Singh, CIT.DR

Section 132Section 143(3)Section 153CSection 263

Arunaben Kishorkumar Mandalia, Ahmedabad vs. The Pr.CIT, Central, Ahmedabad

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

ITA 1052/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad20 Jan 2026AY 2017-18

For Appellant: Shri M K Patel, with Shri Vartik Choksi, ARsFor Respondent: Shri Sher Singh, CIT.DR

Section 132Section 143(3)Section 153CSection 263

DCIT, Cir-5(1), Kolkata vs. M/S Coal India Ltd., Kolkata

ITA 1697/KOL/2019[2014-15]Status: DisposedITAT Kolkata20 Jan 2026AY 2014-15

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

which has been claimed to be exempt as income u/s. 10(34) of the Income Tax Act. The assessee has not offered any disallowance u/s. 14A in respect of earning of exempt income. During the assessment proceedings, the assessee company was asked why disallowance u/s. 14A would not be made ... Page 27 ITA Nos.: 466, 622, 467, 623/KOL/2018 & 1406, 1696, 1407, 1697/KOL/2019 AYs: 2011-12 to 2014-15 M/s. Coal India Ltd. 2. “Disallowance u/s 14A - Under normal provisions and under 115BJ (Department's Ground, AY 2011-12, 2012-13, 2013-14 and 2014-15) 2.1 This ground of appeal

DCIT, Cir-5(1), Kolkata vs. M/S Coal India Ltd., Kolkata

In the result, the Revenue’s appeal in ITA No

ITA 1696/KOL/2019[2013-14]Status: DisposedITAT Kolkata20 Jan 2026AY 2013-14

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

which has been claimed to be exempt as income u/s. 10(34) of the Income Tax Act. The assessee has not offered any disallowance u/s. 14A in respect of earning of exempt income. During the assessment proceedings, the assessee company was asked why disallowance u/s. 14A would not be made ... relation to income which does not form part of the total income under this Act". In view of the above, disallowance u/s. 14A is required to be made in respect of earning of exempt income u/s. 10(34) of the Income Tax Act and accordingly is not satisfactory in accordance

M/S Coal India Ltd., Kolkata vs. DCIT, Cir-5(1), Kolkata

ITA 1407/KOL/2019[2014-15]Status: DisposedITAT Kolkata20 Jan 2026AY 2014-15

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 1Section 115JSection 250

Impulse (India) (P) Ltd v. ACIT[(2008) 22 SOT 368 (Del)] 7.7 It is also submitted that no disallowance u/s 14A of the Act can be made as the Apex Charges from its subsidiary companies due to various management, supervisory, control, consultancy, services provided by CIL to its subsidiaries, which ... 14A of the Act. 7.8 It is further submitted that only dividend income which is exempt needs to be considered while computing the disallowance u/s 14A of the Act and reliance has been placed upon the decision of the Tribunal in REI Agro Ltd. (supra) which has been confirmed

M/S. Coal India Limited, Kolkata vs. DCIT, Circle - 5(1), Kolkata

In the result, the Revenue’s appeal in ITA No

ITA 1406/KOL/2019[2013-14]Status: DisposedITAT Kolkata20 Jan 2026AY 2013-14

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

which has been claimed to be exempt as income u/s. 10(34) of the Income Tax Act. The assessee has not offered any disallowance u/s. 14A in respect of earning of exempt income. During the assessment proceedings, the assessee company was asked why disallowance u/s. 14A would not be made ... relation to income which does not form part of the total income under this Act". In view of the above, disallowance u/s. 14A is required to be made in respect of earning of exempt income u/s. 10(34) of the Income Tax Act and accordingly is not satisfactory in accordance

DCIT, Circle - 5(1), Kolkata vs. M/S. Coal India Limited, Kolkata

ITA 623/KOL/2018[2012-13]Status: DisposedITAT Kolkata20 Jan 2026AY 2012-13

Section 115JSection 250

DCIT, Circle - 5(1), Kolkata vs. M/S. Coal India Limited, Kolkata

ITA 622/KOL/2018[2011-12]Status: DisposedITAT Kolkata20 Jan 2026AY 2011-12

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

which has been claimed to be exempt as income u/s. 10(34) of the Income Tax Act. The assessee has not offered any disallowance u/s. 14A in respect of earning of exempt income. During the assessment proceedings, the assessee company was asked why disallowance u/s. 14A would not be made ... Impulse (India) (P) Ltd v. ACIT[(2008) 22 SOT 368 (Del)] 7.7 It is also submitted that no disallowance u/s 14A of the Act can be made as the Apex Charges from its subsidiary companies due to various management, supervisory, control, consultancy, services provided by CIL to its subsidiaries, which