Income from Assignment of patent for exploiting it commercially is Capital Gain

In absence of tax free income claim, no disallowance can be made U/s.14A

The pre-requisite to invoke the provisions of section 14A read with rule 8D of the Rules is that the assessee should have claimed some expenditure against exempt income. In the case under consideration, no exempt income was shown by the assessee in its return, so, there was no justification for making disallowance of any kind.

I

Please become a Premium member. If you are already a Premium member, login here to access the full content.