Section 14A Disallowance Cannot Be Added to MAT Book Profits: ITAT Chandigarh

Sky AMA Infra Private Limited Vs DCIT (ITAT Chandigarh) ITAT Chandigarh has issued a partial relief to Sky AMA Infra Private Limited for Assessment Year 2018-19, addressing a significant disallowance of Rs. 79.21 Lacs under Section 14A of the Income Tax Act. The case stemmed from the assessee’s receipt of Rs. 863.10 Lacs in exempt dividend income, primarily from an investment in M/s Fastway Transmissions Pvt. Ltd. Sky AMA Infra argued that no expenses were incurred in earning this income, thereby rendering a disallowance unwarranted. However, the Assessing Officer (AO) contested this pos...