Amended Section 14A: How far conforming to Judicial observations?

Abhishek Singhvi – [2022] 137 taxmann.com 298 (Article)

The Income Tax Act, 1961 (for brevity hereinafter referred to as “the Act”) is a very detailed statute that engulfs within itself provisions to govern different situations for facilitation of proper computation of the total income. Disallowance provisions are one such species of provisions that disallow certain expenditures as deductions for calculating total income.
To understand this, let us briefly understand how the Act functions when it comes to deductions. To earn an income, the assessee might incur some expenditure(s)and the act to promote/ease some of these expenditures allows specific deductions from the income earned (Income-Deductions=Gross Total Income). Section 14 provides for the 5 heads of income namely income from Salaries (Sec 15-17), House Property (Sec 22-27), Profits and gains from business or professions (Sec 28-44DB), Capital Gain (Sec 45-55A), and Income from other sources (Sec 56-59).

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