No disallowance u/s 14A if no exempt income earned or received

Cheminvest Limited Vs Commissioner of Income Tax (Delhi High Court) Brief – Delhi High Court held in the case of Cheminvest Ltd. v. CIT that No disallowance u/s 14A can be made in a year in which no exempt income has been earned or received by the assessee. Section 14A of Income Tax Act, 1961 does not apply to shares bought for strategic purposes. Facts of the case: The Appellant is engaged in the business of making investment in shares and accepting/granting of loans. The Assessee is one of the co-promoters of Max India Ltd. In the AY in question, the Appellant borrowed funds on which int...