Case Law Details
DCIT Vs Sarita Synthetics & Industries Ltd. (ITAT Visakhapatnam)
Conclusion: No disallowance u/s 14A was called for in case of no exempt income earned by assessee in the relevant assessment years.
Held:
In the instant case, assessee did not earn income which was exempt u/s 14A. AO made the addition placing reliance on the Circular No.5/2014 of the CBDT dated 11.02.2014. It was noted that High Court in the case of Pr.Commissioner of Income Tax Vs. IL &FS Energy Development Company Ltd. reported in 250 Taxman 0174 considered the Board Circular and held that the Circular cannot override the express provisions of section 14A r.w.Rule 8D of I.T.Rules. Following the same, it was concluded that no disallowance u/s 14A was called for in case of no exempt income earned by assessee, in the relevant assessment years.
FULL TEXT OF THE ITAT JUDGEMENT
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