No further disallownce U/s. 14A warranted if Voluntary disallowance by Assessee exceeds exempted income

Coffeeday Enterprises Ltd. Vs DCIT (ITAT Bangalore) The issue under consideration is whether CIT(A) is correct in confirming the enhancement of disallowance made by the AO over and above the amount disallowed by the assessee u/s 14A of the Act? ITAT states that, the assessee has received dividend income of Rs.8.47 crores and it has voluntarily disallowed a sum of Rs. 28.56 crores u/s 14A of the Act. ITAT also notice from the computation of income that, the assessee has also earned Long term capital gain of Rs. 13 crores and claimed the same as exempt. Thus aggregate amount of exemption claimed...