Dismissing the appeal of the Revenue the Court held that the Tribunal was right in holding that the disallowance made under section 14A was not applicable to the AY 2002-03 as it was brought into the statute book by the Finance Act, 2006 only with effect from April 1, 2007. The notice under section 148 was issued to the assessee on January 28, 2009, presumably taking note of the fact that the insertion of section 14A was made with retrospective effect from April 1, 1962. What was intended to be said by the Tribunal was that section 14A had been functionally made operative on introduction of rule 8D which was inserted by the Income-tax (Fifth Amendment) Rules, 2008 with effect from March 24, 2008 ([2008] 299 ITR (St.) 88) and therefore, section 14A read with rule 8D was not applicable to the AY 2002-03 and the finding rendered by the Tribunal set out the correct legal position.  Order of Tribunal affirmed. (AY. 2002-03)