Case Law Analysis
|Income Tax Appellate Tribunal
Section 14A IT Act | Disallowance Under Rule 8D Invalid Without Exempt Income Post-2020 Amendment : ITAT Delhi
ITAT Delhi ruled that disallowance under Section 14A read with Rule 8D is unsustainable if no exempt income exists in the relevant assessment year, even if investments were held. The decision reinforces that the 2020 Finance Act amendment, making dividends taxable in shareholders' hands, nullifies Section 14A applicability for such cases, impacting tax assessments for companies with non-yielding investments.