After five years of wait , finally , ITAT Special Bench order in case of Cheminvest Ltd vs CIT  121 ITD 318 (Delhi) (SB) has been set aside by Delhi High Court vide its judgement dated 2nd September 2015 . This Special Bench order must have become basis for dis-allowance u/s 14A in thousands of cases all around country. So , its great relief for the tax payers who have suffered such an illogical dis-allowance that even if you do not earn income , the punishment in form of dis-allowance u/s 14A will have to bear with . The judgment of Delhi High Court is quite important in the sense that the expression 'does not form part of the total income' in Section 14A has been interpreted to mean actual receipt of exempt income .
Activate Annual Subscription
To view this post please login and activate subscription.