Deletion of Addition u/s 14A of Income Tax Act: Allahabad HC dismisses Revenue Dept's Appeal [Read More]

The Allahabad High Court has upheld the Income Tax Appellate Tribunal's decision to annul additions under Section 14A of the Income Tax Act, dismissing an appeal by the Commissioner of Income Tax-II, Kanpur, against U.P. State Industrial Development Corporation Ltd. \r

The appeal, admitted on January 18, 2017, contested the ITAT's July 24, 2014 order for the assessment year 2006-07. The court concurred with the ITAT, citing the Supreme Court's stance in Commissioner of Income Tax vs. Essar Teleholdings Ltd., emphasizing Rule 8D's prospective application and affirming that underwriting commission unrelated to taxable income components couldn't be taxed.