CIT vs Holcim India: No 14A Disallowance Without Exempt Income

CIT Vs Holcim India P. Ltd. (Delhi High Court) Delhi High Court has dismissed appeals filed by the Income Tax Department (Revenue) against Holcim India P. Ltd. for the Assessment Years 2007-08 and 2008-09. The core issue in contention was the disallowance of expenses under Section 14A of the Income Tax Act, 1961, amounting to Rs. 8,61,50,315/- and Rs. 6,60,93,678/- respectively, on the grounds that the assessee had not earned any dividend income. The case, heard by the Delhi High Court, revolved around whether Section 14A of the Income Tax Act, which restricts deductions for expenditure incurr...