Controversies surrounding Section 14A of the Income Tax Act
-By CA Vivek Newatia
-By CA Puja Borar
Section 14A introduced by the Finance Act 2001 with retrospective effect from 1st April 1962 has been one of the most litigated provisions with different courts interpreting it differently. The Section provides for disallowance of such expenditure which is incurred in relation to income which does not form part of the total income.