Section 14A disallowance not warranted for investments not yielding tax-free income

DCIT Vs Paranjapee Schemes Construction Ltd (ITAT Mumbai)

The recent decision by the Income Tax Appellate Tribunal (ITAT) Mumbai in the case of DCIT vs. Paranjapee Schemes Construction Ltd. sheds light on the applicability of Section 14A of the Income Tax Act concerning disallowances for investments not yielding tax-free income. The appeal was filed by the revenue against the order of the Commissioner of Income-tax (Appeals), Mumbai/National Faceless Appeal Centre, Delhi, for the Assessment Year 2020-21.

Detailed Analysis:

The case primarily revolves around two key grounds of appeal raised by the revenue:

1. Disallowance under section 14A r.w.rule 8D.

Please become a Premium member. If you are already a Premium member, login here to access the full content.