The assessee invested in optionally convertible debentures funded mainly through non-interest-bearing borrowings, and did not earn any exempt income during the year. AO’s disallowance of Rs. 1.15 crore under Section 14A read with Rule 8D was upheld by CIT(A), but ITAT held that in the absence of exempt income, such disallowance is not justified.

The tribunal observed that once a corporate debtor defaults on a debt, the reason for the default, including inability to pay due to COVID-19, is irrelevant for admitting the petition. Technical objections, including alleged insufficient stamping of documents and procedural defects, were also rejected.

The tribunal observed that once a corporate debtor defaults on a debt, the reason for the default, including inability to pay due to COVID-19, is irrelevant for admitting the petition. Technical objections, including alleged insufficient stamping of documents and procedural defects, were also rejected.