Where the High Court failed to consider the issue of interpretation of section …
Where the High Court failed to consider the issue of interpretation of section 14A (of Income Tax Act, 1961) and dismissed appeal holding that no substantial question of law arises in appeal, matter was remitted to High Court for fresh consideration.As per S. 14 expenses incurred to earn amount, which is exempted from tax would not be entitled to deduction.
Where the High Court failed to consider the issue of interpretation of section 14A (of Income Tax Act, 1961) and dismissed appeal holding that no substantial question of law arises in appeal, matter was remitted to High Court for fresh consideration.As per S. 14 expenses incurred to earn amount, which is exempted from tax would not be entitled to deduction.
Held
There is no judgment of the Kolkata High Court on the interpretation of Section 14A (of Income Tax Act, 1961). Section 14A (of Income Tax Act, 1961) has been introduced in the Act to say that expenses incurred to earn the amount, which is exempted from tax, would not be entitled to a deduction. This point has not been considered in the impugned judgment of the Kolkata High Court.
(Para 1)
In fact, the impugned judgment only refers to minutes of the order. In the circumstances, the said minutes are set aside and the matter is remitted to the High Court for de novo consideration in accordance with law.
(Para 2)
Heard learned counsel on both sides.
Delay condoned.
Leave granted.
The assessee claims deduction for expenses incurred to earn amounts which are exempted from tax. The case involves the interpretation of Section 14A (of Income Tax Act, 1961) [for short, ‘the Act’]. The Kolkata High Court has said that no substantial question of law arises in this case. There is no judgment of the Kolkata High Court on the interpretation of Section 14A (of Income Tax Act, 1961). Section 14A (of Income Tax Act, 1961) has been introduced in the Act to say that expenses incurred to earn the amount, which is exempted from tax, would not be entitled to a deduction. This point has not been considered in the impugned judgment of the Kolkata High Court.
In fact, the impugned judgment only refers to minutes of the order. In the circumstances, the said minutes are set aside and the matter is remitted to the High Court for de-novo consideration in accordance with law.
The civil appeal is, accordingly, allowed.
No order as to costs.
[S.H. KAPADIA]
[MADAN B. LOKUR]
New Delhi,
August 23, 2012.
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Questions
Where the High Court failed to consider the issue of interpretation of section 14A (of Income Tax Act, 1961) and dismissed appeal holding that no substantial question of law arises in appeal, matter was remitted to High Court for fresh consideration.As per S. 14 expenses incurred to earn amount, which is exempted from tax would not be entitled to deduction.
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