Proviso to Section 14A bars reassessment but not original assessment on the basis of the retrospective amendment

The proviso to Section 14A only bars reassessment/rectification and not original assessment on the basis of the retrospective amendment. The proviso does not stipulate and state that Section 14A of the Act cannot be relied upon during the course of the original assessment proceedings. The Assessing Officer was, therefore, required to disallow expenses incurred for earning exempt or tax free income.

Failure on the part of the Assessing Officer to apply Section 14A when he passed the assessment order under Secti

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