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Section 14A

Disallowance under Section 14A of Income TAx Act, 1961

Latest Articles


Amendment in Section 14A ‘Retrospective or Prospective’

Income Tax : Understanding the retrospective and prospective application of amendment in Section 14A of the Income-tax Act....

August 6, 2022 5868 Views 4 comments Print

Disallowance of Expenditure incurred in relation to income exempt from tax

Income Tax : Section 14A, which pertaining to Expenditure incurred in relation to income not includible in total income, was introduced with ef...

March 16, 2022 7653 Views 0 comment Print

Section 14A disallowance even in absence of any exempt income

Income Tax : Clarification in respect of disallowance under section 14A in absence of any exempt income during an assessment year Section 14A o...

February 1, 2022 35586 Views 3 comments Print

Section 14A disallowance- South Indian Bank Ltd Vs. CIT (Supreme Court)

Income Tax : The issue before the Hon’ble Supreme Court (SC) was whether section 14A of the Income-tax Act, 1961 (the Act) enables the Depart...

September 21, 2021 7533 Views 1 comment Print

Land Mark Judgement: No section 14A disallowance if assessee had sufficient interest free own fund

Income Tax : In the landmark judgement the Hon’ble Supreme Court of India allowed the appeal of the South Indian Bank by settling the long dr...

September 13, 2021 11640 Views 0 comment Print


Latest News


6 Suggestions for Amendments in Income Tax Act by BCAS

Income Tax : Bombay Chartered Accountants' Society has made a Representation on 'Suggestions for Amendments in the Income Tax Act', on 24th May...

May 28, 2019 8046 Views 2 comments Print

Stop Mechanical disallowance of expenditure u/s 14A r.w. Rule 8D: ICAI

Income Tax : The mechanical disallowance u/s 14A r.w. Rule 8D is also being added to the book profit by the AO irrespective of the fact whethe...

January 24, 2018 843 Views 0 comment Print

Easwar Committee Recommendations For Income Tax Reforms Through Administrative Instructions

Income Tax : 1. IMPLEMENTATION OF IND-AS AND THEIR IMPACT ON TAXABLE INCOME IND-AS (Indian version of IFRS) accounting standards are being impl...

January 21, 2016 983 Views 0 comment Print

Simplify Section 14A to remove ambiguity

Income Tax : Amendments to Section 14A to provide that (i) dividend received after suffering dividend-distribution tax and share income from fi...

January 19, 2016 680 Views 0 comment Print

Bombay high court to hear petition challenging Constitutional validity of Rule 8D

Income Tax : As earlier intimated to you, Writ Petition bearing No. 50 of 2010 (Indian Exporters Grievances Forum & Other vs. CIT) challenging ...

February 17, 2010 498 Views 0 comment Print


Latest Judiciary


Domestic company paying DDT u/s. 115O doesn’t enter domain of DTAA: ITAT Pune

Income Tax : ITAT Pune held that the DTAA does not get triggered at all when a domestic company pays DDT u/s. 115O of the Income Tax Act. In nu...

August 16, 2024 78 Views 0 comment Print

TDS on unfinished work deductible post receipt of 100% revenue of project: ITAT Delhi

Income Tax : The assessee had filed return of income of Rs.92,06,590 which was selected for complete scrutiny and during the course of assessme...

August 12, 2024 252 Views 0 comment Print

Disallowance u/s. 14A unjustified as own funds are in excess of investments made in funds yielding excempt income: ITAT Ahmedabad

Income Tax : ITAT Ahmedabad held that disallowance of interest under section 14A unjustified as assessee’s own funds are far in excess of the...

August 9, 2024 330 Views 0 comment Print

Deduction not available when opted for Tonnage Tax Scheme: ITAT Hyderabad

Income Tax : ITAT Hyderabad held that as per the provisions of section 115VG of the Income Tax Act, once the assessee opts for the Tonnage Tax ...

August 5, 2024 225 Views 0 comment Print

Inclusion of Bank & Bank Guarantee Charges for Disallowance u/s 14A Unjustified: ITAT Delhi

Income Tax : ITAT Delhi held that disallowance u/s. 14A of the Income Tax Act unjustified as sufficient interest free funds were available for ...

July 31, 2024 234 Views 0 comment Print


Latest Notifications


Section 14A disallowance cannot exceed total expense: CBDT

Income Tax : 2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts,...

June 2, 2016 6103 Views 0 comment Print

CBDT Circular No. 5/2014 Dated: 11.02.2014

Income Tax : Circular No. 5/2014-Income Tax Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby clari...

February 11, 2014 51944 Views 0 comment Print

Notification No. 45/2008-Income Tax Dated: March 24, 2008 on Section 14A

Income Tax : INCOME TAX NOTIFICATION NO-45/2008, DT: March 24, 2008 Method for determining amount of expenditure in relation to income not incl...

March 31, 2008 3593 Views 0 comment Print

Proceedings U/s. 144A & 144B of Income Tax Act, 1961- Procedural Instructions

Income Tax : The provisions of Sections 144-A and 144-B of the Income-tax Act have come into force with effect from 1st January 1976. Instructi...

December 31, 1977 11237 Views 0 comment Print


No Disallowance U/s. 14A on strategic investments out of Commercial expediency

April 8, 2018 3165 Views 0 comment Print

Where assessee had made investment in subsidiary companies not to earn tax free income but out of commercial expediency, no dis allowance under section 14A was called for.

Rule 8D of Income Tax Rules is Prospective & cannot be applied to AY prior to 2008-09

April 8, 2018 4926 Views 0 comment Print

CIT Vs M/s Essar Telehoding Ltd. (Supreme Court of India) Applying the principles of statutory interpretation for interpreting retrospectivity of a fiscal statute and looking into the nature and purpose of sub­section (2) and sub­section (3) of Section 14A as well as purpose and intent of Rule 8D coupled with the explanatory notes in the […]

Max opp Investment Ltd (SC)- Section 14A – An Analysis

March 18, 2018 19545 Views 0 comment Print

Supreme Court (SC) Ruling – Whether the expenditure incurred (including interest paid on funds borrowed), while purchasing the shares/ stocks of a company for the purpose of gaining control over the investee company or as ‘stock-in-trade’ (i.e. as a business activity) and not as investment to earn dividends, can be treated as expenditure ‘in relation to income i.e. dividend income, which does not form part of the total income?

Sec. 14A – End of controversy relating to strategic investments & stock-in-trade

March 17, 2018 6636 Views 2 comments Print

In case of group of companies, normally a company hold shares in various subsidiaries / group companies. The dividend paid by these group companies is exempt in the hands of the parent company under section 10(34) of the Income-tax Act, 1961 (Act).

No disallowance U/s. 14A in absence of expenditure to earn exempt income

March 5, 2018 2313 Views 0 comment Print

M/s. Varsha Corporation Ltd. Vs. Dy. CIT (ITAT Mumbai) In the case under consideration, in the computation of income,the assessee had not claimed any exempt income. The expenditure claimed by it in the profit and loss account have not been shown to have been incurred for earning any exempt income during the year under consideration. […]

No Dis allowance U/s. 14A if no exempt income earned during the year

March 4, 2018 6978 Views 0 comment Print

Where assessee had not earned any tax-free income, then, corresponding expenditure also could not be worked out for dis allowance.

Amount disallowed u/s 14A cannot be added to arrive at book profit for MAT Calculation

February 27, 2018 5733 Views 0 comment Print

ribunal followed its decision in M/s. Essar Teleholdings Ltd. v/s. DCIT to held that an amount disallowed under Section 14­A of the Act cannot be added to arrive at book profit for purposes of Section 115JB of the Act.

Section 14A – Surplus own funds, no disallowance U/s. 14A? Borrowed Money Vs. Own Money

February 15, 2018 8493 Views 0 comment Print

The people of the largest democracy in India, expected in the Union Budget 2018 to introduce some amendments to section 14A of the Income Tax Act, 1961 (Act), to reduce tax litigations on account of section 14A and to bring in certainty and clarity in the disallowance under Section 14A.

Rule 8D not applicable if AO not recorded dis-satisfaction with correctness of claim of assessee

February 9, 2018 1536 Views 0 comment Print

Pr. CIT Vs. Reliance Capital Asset Management Ltd. (Bombay High Court) The assessing officer did not specifically record that he is not satisfied with the correctness of the claim of the assessee in respect of the expenditure in relation to the income which does not form part of the total income under the Act. However, […]

Filing of cross-objection after 4 years is not proper after acceptance of dis allowance

February 5, 2018 621 Views 0 comment Print

Belated cross-objections– by over four years, in the opinion of the Court, meant that the appellants were seeking to rake up stale issues for which they had accepted the finality as regards their tax liability.

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