No disallowance U/s. 14A in absence of expenditure to earn exempt income

M/s. Varsha Corporation Ltd. Vs. Dy. CIT (ITAT Mumbai) In the case under consideration, in the computation of income,the assessee had not claimed any exempt income. The expenditure claimed by it in the profit and loss account have not been shown to have been incurred for earning any exempt income during the year under consideration. Therefore, in our opinion,the FAA was not justified in confirming the dis allowance made by the AO, u/s.14A of the Act. In the cases relied upon by the assessee i.e. Cheminvest Limited and Ballarpur Industries Ltd.the Honorable courts have held that for making any ...