Disallowance u/s 14A cannot be made in absence of exempt income

DCIT  Vs Sarita Synthetics & Industries Ltd. (ITAT Visakhapatnam) Conclusion: No disallowance u/s 14A was called for in case of no exempt income earned by assessee in the relevant assessment years. Held: In the instant case, assessee did not earn income which was exempt u/s 14A. AO made the addition placing reliance on the Circular No.5/2014 of the CBDT dated 11.02.2014. It was noted that High Court in the case of Pr.Commissioner of Income Tax Vs. IL &FS Energy Development Company Ltd. reported in 250 Taxman 0174 considered the Board Circular and held that the Circular cannot override...