The machinery provision for giving effect to section 14A of the Income-tax Act, 1961 came into effect only from the assessment year 2008-09. Hence there can be no application of section 14A prior to assessment year 2008-09.(AY.2006 -07)
Federal Bank Ltd. v. DCIT (2019) 417 ITR 694 /( 2020) 269 Taxman 190(Ker)(HC)
S. 14A : Disallowance of expenditure – Exempt income – Section is not retrospective in operation – Not applicable prior to assessment year 2008 -09.