Case Law Details
CA Sandeep Kanoi
Section 14A of the Act provides that for the purposes of computing the total income under the Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. Hence, what Section 14A provides is that if there is any income which does not form part of the income under the Act, the expenditure which is incurred for earning the income is not an allowable deduction. For the year in question, the finding of fact is that the assessee had not earned any tax free income. Hence, in the absence of any tax free income, the corresponding expenditure could not be worked out for dis allowance. The view of the CIT(A), which has been affirmed by the Tribunal, hence does not give rise to any substantial question of law. Hence, the deletion of the dis allowance of Rs.2,03,752/- made by the Assessing Officer was in order.
Full Text of the Judgment is as follows:-
HIGH COURT OF JUDICATURE AT ALLAHABAD
INCOME TAX APPEAL No. 88 of 2014
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