India: Amendment with respect to nondeductible expenses does not have retroactive effect (high court decision)

A high court decision concerning nondeductible expenses

A high court decision concerning nondeductible expenses

The Delhi High Court held that an amendment under Finance Act, 2022—confirming that expenses related to exempt income are nondeductible whether or not the taxpayer has exempt income in a particular tax year—does not have retroactive effect and is effective only from 1 April 2022, as provided in the Memorandum to the Finance Bill, 2022.

The case is: PCIT v. Era Infrastructure (India) Ltd.

Read a July 2022 report [PDF 444 KB] prepared by the KPMG member firm in India


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