Dismissing the appeal of the revenue the Court held that, in view of the clear fact found that the assessee did not earn any exempt income or dividend income on the equity shares held by it during this year, there was no question of disallowing any part of the debenture interest or finance charges, since the provisions under section 14A were not attracted at all. Followed CIT v. Chettinad Logistics P. Ltd. (2017) 80 taxmann.com 221 (Mad) (HC), Redington (India) Ltd. v. Add.CIT ( 2017) 392 ITR 633 (Mad.)(HC). (AY. 2002-03)
CIT v. Apollo Infrastructure Projects Finance Co. Ltd. (2020) 421 ITR 162 (Mad.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-No non-taxable income in relevant assessment Year-No disallowance can be made.