Amendment to section 14A of Income Tax Act has prospective effect

Royal Orchid Hotels Ltd Vs ACIT (ITAT Bangalore) ITAT Bangalore held that amendment to section 14A introduced vide Finance Act, 2022 is effective from 1st April 2022. The word ‘for removal of doubts’ cannot be presumed to have retrospective effect. Facts- Revenue has preferred the correct appeal mainly alleging that even if there was no exempt income received by the assessee still the AO can make disallowance u/s 14A r.w Rule 8D and he relied on the order of the AO. The amendment by the Finance Act 2021 is a retrospective in nature . The CIT(A) has wrongly interpreted the provision and all...