Section 14A Explanation Applies Prospectively from 01/04/2022, Not Retrospectively

Ace Urban Developers Private Limited Vs ACIT (ITAT Visakhapatnam) ITAT Visakhapatnam, in the case of Ace Urban Developers Private Limited vs. ACIT, addressed the issue of disallowance under Section 14A of the Income Tax Act, 1961, read with Rule 8D of the Income Tax Rules, 1962. The dispute arose from the addition made by the Assessing Officer (AO) on the grounds that the assessee did not earn any exempt income during the relevant assessment year. The CIT(A) upheld the addition, citing the Explanation to Section 14A introduced by the Finance Act, 2022, which states that the provision applies e...