Expenditure Attributable to Earning Exempt Income has to be Disallowed u/s 14A of Income Tax Act, Cannot be Treated as Business Expenditure: Supreme Court Rules In Favour of PNB Housing Finance

As a ruling in favour of PNB Housing Finance, the Supreme Court has held that expenditure attributable to earning exempt income has to be disallowed under section  14A of Income Tax Act, cannot be treated as business expenditure. The SLP arose out of impugned final judgment and order passed by the High Court of Delhi at New Delhi

A two judge bench of Justice B V Nagarathna and Justice Ujjal Bhuyan observed that there is a huge delay of 350 days in filing this Special Leave Petition. The reasons seeking condonation of delay are not explained to the satisfaction of this Court.

The Court found that the High Court has applied a judgment of the Court in the case of Maxopp Investment Limited vs. CIT [(2018), and has granted relief to the respondent-M/S PNB Housing Finance Ltd.

The Court refused to inclined to condone the delay or/and interfere in the matter on merits and dismissed the Special Leave Petition.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates