Section 14A can be put in motion only when there is exempt income

M/s Adhunik Metaliks Ltd. Vs ACIT (ITAT Kolkata) It is not in dispute that the assessee has not derived any exempt income in the form of dividend during the year. The provisions of section 14A of the Act could be put in motion only when there is exempt income and if certain expenses were debited by the assessee in its profit and loss account for the purpose of earning such income. This is very clear from the wordings of the said section. In the instant case, admittedly, the assessee has not derived any exempt income. Hence, the provisions of section 14A of the Act cannot be invoked at all in t...