“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(CC)-8(3), Mumbai vs. Shapoorji Pallonji and Company Private Limited, Mumbai

In the result, the cross-objection of the assessee is partly

ITA 2831/MUM/2025[2014-15]Status: DisposedITAT Mumbai12 Jan 2026AY 2014-15

Bench: Shri Om Prakash Kant ()

Section 115JSection 143(3)Section 147Section 148Section 14A

instant case, facts are entirely different and such live link is evident from the reasons recorded themselves. The Assessing Officer examined the disallowance u/s 14A of the Act and after due verification that expenses were incurred for investment in the exempted income yielding assets, he noted that no disallowance ... disallowance i.e. disallowance of payments amounting to Rs.3,74,61,980/- made to Smt. Mayaben Parmar and Shri Vijay Parmar and also disallowance u/s 14A of the Act amounting to Rs. 76,99,24,606/-. 9.4 The Ld. counsel for the assessee submitted that the Ld. CIT(A) following

Kumar Properties and Real Estate Private Limited, Pune vs. Assistant Commissioner of Income Tax, Circle 14, Pune

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 2798/PUN/2025[2017-18]Status: DisposedITAT Pune09 Jan 2026AY 2017-18

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2017-18

For Appellant: Shri Rajendra AgiwalFor Respondent: Shri Basavaraj Hiremath, Addl.CIT

Section 142(1)Section 143(2)Section 14ASection 270A

from which is exempt from tax in the hands of the assessee. He, therefore, asked the assessee to explain as to why the disallowance u/s 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 (hereinafter referred to as ‘the Rules’) should not be made. Rejecting ... paper book, submitted that the assessee before the Ld. Addl. / JCIT(A) had submitted that the Assessing Officer has wrongly calculated the disallowance u/s 14A of the Act read with Rule 8D of the Rules and the correct disallowance comes to Rs.7,95,909/-. However, the Ld. Addl. / JCIT

Kp Advisory Services LLP, Hyderabad vs. ACIT., Central Circle-2(1), Hyderabad

In the result, appeal of the Assessee is partly allowed for statistical purposes

ITA 1013/HYD/2025[2018-19]Status: DisposedITAT Hyderabad09 Jan 2026AY 2018-19

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita No.1013/Hyd/2025 Assessment Year 2018-2019 Kp Advisory Services Llp, The Acit, Hyderabad. Pin–500 016. Vs. Central Circle-2(1), Telangana. Hyderabad. Pan Aarfk7349F (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Sri Sp Chidambaram, Advocate राज" व "ारा /Revenue By: Sri Ashutosh Pradhan, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 10.12.2025 घोषणा की तारीख/Pronouncement: 09.01.2026 आदेश/Order

For Appellant: Sri SP Chidambaram, AdvocateFor Respondent: Sri Ashutosh Pradhan, Sr. AR

Section 10(34)Section 143(1)Section 143(3)Section 14ASection 234ASection 270A

which is exempt from tax. The assessee has received Dividend income of Rs.60,48.001/- which has been claimed as Exempt income. However, no disallowance u/s 14A has been made by the assessee in the computation of income.” 7 ITA.No.1013/Hyd./2025 7.2. Accordingly, it is an admitted fact that dividend

Saurashtra Cement Limited, Porbandar vs. The Principal Commissioner of Income Tax, Jamnagar

In the result, appeal filed by the assessee is allowed

ITA 307/RJT/2024[2018-19]Status: DisposedITAT Rajkot08 Jan 2026AY 2018-19

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं/.Ita No.307/Rjt/2024 िनधा"रणवष"/ Assessment Year: 2018-19 Saurashtra Cement Ltd. Principal Commissioner Of Near Railway Station, बनाम Income Tax, Jamnagar, Saurashtra Cement Factory, Jamnagar Vs. P.O. Ranavav, Adityana Road, Porbandar, Gujarat-360560 Pan : Aahfs5211J (अपीलाथ"/Assessee) : (""थ"/Respondent) िनधा"रती की ओर से/Assessee By : Shri Vimal Desai, Ld.Ar राज" की ओर से/Revenue By : Shri Sanja Punglia, Ld. Cit-Dr सुनवाई की तारीख/Date Of Hearing : 16/10/2025 घोषणा की तारीख/Date Of Pronouncement : 08/01/2026 Order

For Appellant: Shri Vimal Desai, ld.ARFor Respondent: Shri Sanja Punglia, Ld. CIT-DR

Section 143(3)Section 14ASection 263Section 36(1)(iii)

records, ld.PCIT observed that during the course of scrutiny assessment proceedings, the following issues have not been verified, by the assessing officer: (i)Disallowance u/s 14A of the Act r.w.r. 8D of Income-tax Rule in respect of expenses incurred for earning exempt income. Saurashtra Cement Ltd. ITA No.307 /RJT/2024 ... revision order. In the said notice, learned PCIT stated that the assessing officer has failed to make the disallowance u/s 14A of the Act, rwr 8D of the Rule which works out to be at least to the tune of Rs. 35,89,720/-(1% of Rs.35

Mahabhadra Constructions Ltd, Gautam Budh Nagar vs. DCIT, Circle-13(2), Delhi

Appeal is allowed for statistical purposes

ITA 5902/DEL/2024[2014-15]Status: DisposedITAT Delhi08 Jan 2026AY 2014-15

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahmanita No. 5902/Del/2024 : Asstt. Year : 2014-15 M/S Mahabhadra Constructions Ltd., Vs Dcit, (Erstwhile Jaypee Development Circle-13(2), Corporation Ltd.), Sector-128, New Delhi-110002 Sultanpur, Gautam Buddha Nagar, Uttar Pradesh-201304 (Appellant) (Respondent) Pan No. Aabcj9515H Assessee By : Sh. V. K. Garg, Adv. Revenue By : Ms. Ankush Kalra, Sr. Dr Date Of Hearing: 08.01.2026 Date Of Pronouncement: 08.01.2026 Order Per Satbeer Singh Godara: This Assessee’S Appeal For Assessment Year 2014-15, Arises Against The Cit(A)/Nfac, Delhi’S Din & Order No. Itba/Nfac/S/250/2023–24/10552668445(1) Dated 21.08.2023, In Proceedings U/S 143(3) Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: Sh. V. K. Garg, AdvFor Respondent: Ms. Ankush Kalra, Sr. DR

Section 143(3)Section 14A

68/Del/2014 dated 16.06.2017 (Special Bench) have already settled the issue that only dividend yielding investments ought to be considered whilst computing such a disallowance u/s 14A r.w. Rule 8D of the Income Tax Rules, 1962. Both the learned lower authorities have admittedly not considered this clinching proposition in their respective

Pg Foils Limited, Ahmedabad vs. The Dy.CIT, Circle-3(1)(1), Ahmedabad

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

ITA 1581/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad06 Jan 2026AY 2018-19

Bench: Shri Tr Senthil Kumar & Shri Narendra Prasad Sinha

Section 143(3)Section 14ASection 801A

Indian Bank Ltd. 130 taxmann.com 178 (SC). The Ld. AR also relied upon various judicial decisions in support of his contention that no disallowance u/s 14A was called for if no exempt income was earned during the year. 7. Per Contra, Shri Yogesh Mishra, the Ld. Sr. DR relied upon ... exempt income was earned by the assessee during the year. It is a settled position that for the year under consideration, no disallowance u/s 14A was called for if no exempt income was earned by the assessee. Hon’ble Supreme Court in the case of CIT Vs. Chettinad Logistics

Pg Foils Limited, Ahmedabad vs. The Dy.CIT, Circle-3(1)(1), Ahmedabad

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

ITA 1580/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad06 Jan 2026AY 2016-17

Bench: Shri Tr Senthil Kumar & Shri Narendra Prasad Sinha

Section 143(3)Section 14ASection 801A

Kirloskar Pneumatic Company Limited, Pune vs. The DCIT Circle 7 Pune, Pune

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 1569/PUN/2025[2020-21]Status: DisposedITAT Pune06 Jan 2026AY 2020-21

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1569/Pun/2025 Assessment Year : 2020-21

For Appellant: Shri Kiran SanmaneFor Respondent: Shri Bharat Andhale

Section 143(2)Section 143(3)Section 14ASection 14A(2)

From the above Rule 8D(i)(ii) w.r.t calculation of expenditure in relation to exempt income, it is concluded that the working of disallowance u/s 14A of IT Act, 1961 is Rs.49,66,705/-. The assessee's contention of disallowing of expenses with respect to salary payments to employees working ... monthly average of investment yielding exempt income during the year as provided for under Rule 8D. Since the assessee has already offered disallowance u/s 14A of Rs.2,58,000/-, the balance amount of Rs.47,08,705/- (Rs.49,66705- Rs.2,58,000/-) is disallowed and added back to total income

M/S K.M.Gases Pvt.Ltd.(Now K.M.Vyapar Pvt.Ltd), Kanpur vs. Dy. CIT-VI, Kanpur

In the result, the appeal of the assessee stands allowed

ITA 199/LKW/2022[2015-16]Status: DisposedITAT Lucknow31 Dec 2025AY 2015-16

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudharyassessment Year: 2015-16 M/S K.M. Gases Pvt. Ltd. V. The Dcit-Vi (Now Known As K.M. Vyapar Pvt. Ltd.) Kanpur 11, Moti Bhawan, 52/1, Collectorgant Kanpur (U.P) Tan/Pan: (Appellant) (Respondent) Appellant By: Shri Saurabh Gupta, C.A. Respondent By: Shri R.R.N. Shukla, D.R. O R D E R

For Appellant: Shri Saurabh Gupta, C.AFor Respondent: Shri R.R.N. Shukla, D.R

Section 14Section 143(3)Section 14ASection 24

Profit (as per P&L a/c) 90,52,603 Add. 1. Dep. Taken separately 23,922 2. Demat Charges 1,796 3. Disallowance u/s 14A 18,731 44,449 90,97,052 Less- 1. Depreciation 4,793 2. Dividend 1,286 3. Profit on sale of investment

DCIT, Circle-5(1), Kolkata vs. Hindusthan National Glass and Industrieslimited, Kolkata

In the result, the appeal of the Revenue is dismissed as being infructuous

ITA 338/KOL/2024[2011-12]Status: DisposedITAT Kolkata31 Dec 2025AY 2011-12

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 148ASection 14ASection 250

directing to consider only the opening and closing value of investments which actually yielded dividend income for the purpose of computation of disallowance u/s 14A of the Act ignoring the Boards Circular and the newly inserted Explanation to Section 14A which has been incorporated to remove doubts. ITA No.: 338/KOL/2024