No Section 14A Disallowance not permissible without Exempt Income: Bombay HC

PCIT Vs Man Infraprojects Ltd. (Bombay High Court) Bombay High Court has dismissed an appeal filed by the Principal Commissioner of Income Tax against Man Infraprojects Ltd., reiterating that no disallowance under Section 14A of the Income Tax Act, 1961, is warranted when the assessee has not received or is not receivable of any exempt income during the relevant previous year. The case for Assessment Year 2009-10 involved the Assessing Officer’s attempt to apply Section 14A despite the undisputed fact that Man Infraprojects Ltd. earned no exempt income. The High Court referenced the Delh...