Section 14A:
Expenditure incurred in relation to income not includible in total income.
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(1) For the
purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of
expenditure incurred by the assessee in relation to income which does not form part of the total income
under this Act.
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(2) The Assessing Officer shall determine the amount of expenditure incurred in relation to such
income which does not form part of the total income under this Act in accordance with such method as
may be prescribed, if the Assessing Officer, having regard to the accounts of the assessee, is not satisfied
with the correctness of the claim of the assessee in respect of such expenditure in relation to income
which does not form part of the total income under this Act.
(3) The provisions of sub-section (2) shall also apply in relation to a case where an assessee claims
that no expenditure has been incurred by him in relation to income which does not form part of the total
income under this Act:
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Provided that nothing contained in this section shall empower the Assessing Officer either to
reassess undersection 147 or pass an order enhancing the assessment or reducing a refund already made
or otherwise increasing the liability of the assessee undersection 154, for any assessment year beginning
on or before the 1st day of April, 2001.
Notes:
1. Ins. by Act 14 of 2001, s. 11 (w.e.f. 1-4-1962).
2. Section 14A renumbered as sub-section (1) thereof by Act 21 of 2006, s. 7 (w.e.f. 1-4-2007).
3. Ins. by s. 7, ibid. (w.e.f. 1-4-2007).
4. Ins. by Act 20 of 2002, s. 10 (w.e.f. 11-5-2001).