No Section 14A Disallowance Without Tax-Exempt Income: ITAT Mumbai

ACIT Vs Bajaj Capital Ventures P. Ltd. (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai Bench has ruled in favor of Bajaj Capital Ventures P. Ltd., dismissing a disallowance made by the Assessing Officer (AO) under Section 14A of the Income Tax Act, 1961. The dispute, for the assessment year 2016-17, centered on whether expenses incurred in relation to exempt income should be disallowed when no such income was earned during the relevant financial year. The cross-appeals were filed by both the Assistant Commissioner of Income Tax (ACIT) and Bajaj Capital Ventures P. Ltd. against an ord...