No Section 14A disallowance when no exempt income earned: Madras HC

CIT Vs Chettinad Logistics Pvt. Ltd. (Madras High Court) Introduction: The case of CIT vs Chettinad Logistics Pvt. Ltd. involves an appeal under Section 260A of the Income Tax Act against the ITAT’s order. The primary issue revolves around the validity of the addition made under Section 14A, read with Rule 8D, concerning an amount of Rs.86,62,748. 1. Background: The Assessee, engaged in trading and forwarding, filed its return for AY 2011-12. The Assessing Officer added Rs.86,62,748 under Section 14A for disallowing expenditure. 2. Appeals and Tribunal’s Decision: The CIT(A) rev...