Income Tax - High Court upholds constitutional validity of Section 14A

By Vijay Kumar

THE Bombay High Court yesterday delivered a landmark judgement in the appeal against the Special Bench Order of the ITAT in the now famous Daga Capital case - 2008-TIOL-509-ITAT-MUM-SB.

The High Court held that provisions of sub sections (2) and (3) of Section 14A of the Income Tax Act 1961 are constitutionally valid; The provisions of Rule 8D of the Income Tax Rules are not ultra vires the provisions of Section 14A, more particularly sub section (2) and do not offend Article 14 of the Constitution.

TIOL once again brings you this 'yesterday's judgement today'

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