No Disallowance under section 14A if assessee not earned any exempt income

NCC Infrastructure Holding Limited Vs ACIT (ITAT Hyderabad) Introduction: In a landmark ruling, the Income Tax Appellate Tribunal (ITAT) Hyderabad stated that no disallowance of deduction under Section 14A of the Income Tax Act can be made if no exempt income is earned by the assessee. The case was brought forward by NCC Infrastructure Holdings Limited, who disputed an addition made by the Assessing Officer under the said section. Analysis: The judgement of the ITAT Hyderabad is rooted in the premise that the amendment to Section 14A of the Act by the insertion of an explanation is prospective...