The Delhi High Court has ruled that deductions sought for expenses related to income other than gross income are not valid. The Delhi High Court has granted relief to Jite Shipyard Ltd.
The Issue to be decided was that whether disallowance made under Section 14A of the Income-tax Act, 1961 can exceed the exempt income earned by the respondent/assessee?
A Special Leave Petition (SLP) was filed by Anuja Pethia, Counsel for the appellant/revenue challenging the said judgment. However, the Supreme Court had dismissed the SLP on 02.07.2018, observing that, the dismissal was based on both procedural delays and the merits of the case.
The Appeal was preferred by the Income Tax Department and Respondent in the Present matter was Jite Shipyard Ltd.
“To be noted, one of us [Rajiv Shakdher, J.], was part of the bench that authored the judgment in Commissioner of Income-tax, Central 1, Chennai v. Chettinad Logistics (P.) Ltd. A special leave petition (SLP) filed by the appellant/revenue, against the said judgment, was dismissed by the Supreme Court on 02.07.2018, both on the grounds of delay and merits”, the Delhi High Court Division Bench of Justice Rajiv Shakdher and Girish Kathpalia observed.
Accordingly, the Appeal was closed.
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