ITAT Mumbai Deletes Section 14A Disallowance as No Expenditure Was Claimed

Kuntal Hasmukhlal Shah Vs ACIT (ITAT Mumbai) Section 14A Cannot Disallow Expenditure Never Claimed: ITAT Mumbai Deletes Entire Disallowance The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) deleted a disallowance of ₹13.76 lakh made under section 14A read with Rule 8D for AY 2017–18, holding that expenditure not claimed as a deduction in the return of income cannot be disallowed. In this case, the assessee had earned exempt income by way of dividend income and long-term capital gains exempt under section 10(38) but had not made any suo motu disallowance under section 14A. During...