Case Law Details
DCIT Vs. Aksh Optifibre Ltd. (ITAT Delhi)
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.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This is an appeal filed by the Revenue against the order of learned Commissioner (Appeals)-I, New Delhi dated 2-12-2015 for the assessment year 2012-13 on the following solitary ground :
Please become a Premium member. If you are already a Premium member, login here to access the full content.
