2022 Section 14A Amendment: Prospective, No Disallowance Without Exempt Income

Mudaliar and Sons Hotels Pvt. Ltd. Vs ACIT (ITAT Mumbai) amendment to section 14A by the Finance Act, 2022 for making disallowance even no exempt income is earned, is held to  be  prospective  in nature Income Tax Appellate Tribunal (ITAT) Mumbai has ruled that the amendment to Section 14A of the Income Tax Act, 1961, introduced by the Finance Act, 2022, which allows for disallowances even when no exempt income is earned, is prospective in nature. This decision came in the case of Mudaliar and Sons Hotels Pvt. Ltd. vs. ACIT, where the assessee challenged disallowances made by the Assessing ...