ITAT Upholds ITR of Aishwarya Rai Bachchan, Deletes ₹4.11 Crore Disallowance u/s 14A

The Income Tax Appellate Tribunal (ITAT) upheld the income tax return of actress Aishwarya Rai Bachchan, deleting a disallowance of ₹4.11 crore made under Section 14A of the Income Tax Act. The article details how the Assessing Officer wrongly attributed expenditure related to exempt income without evidence of direct nexus. The Tribunal ruled that such disallowance requires clear justification and cannot be assumed automatically. It reaffirmed the principle that tax officers must follow judicial discipline and the CBDT’s guidelines. The article underscores the Tribunal’s balanced interpretation of Section 14A, ensuring that legitimate taxpayer claims are protected while preventing arbitrary tax adjustments.