Section 14A not apply when there is no dividend income: ITAT Hyderabad

ACIT Vs V Lycos Internet Ltd. (ITAT Hyderabad)

ITAT Hyderabad held that disallowance under section 14A of the Income Tax Act is rightly deleted by CIT(A) since assessee has not earned any dividend income. Thus, when there is no dividend income, the provisions of section 14A are not applicable.

Facts- Department has preferred the present appeal mainly contesting that CIT(A) has erred in deleting addition under section 14A of the Income Tax Act on the ground that no exempt income was earned by the assessee.

Conclusion- Held that all the

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