Section 14A could only be invoked in presence of exempt income

Zoetis Pharmaceutical Research P. Ltd. Vs. ACIT (ITAT Mumbai) Conclusion: When no exempt income was received or receivable on the investments, no disallowance u/s 14A of the Income Tax Act, 1961 is warranted. Held: The assessee is engaged in the business of trading exports, trading in empty vegetables capsules & research and development in veterinary medicine on lab scale for Zoetis USA and its affiliates. The assessee filed its return in 2014 , wherein disallowance u/s 14A of the Act was taken, but later on the assessee revised its return of income in 2016 u/s 139(5) of the Act, wherein t...