Disallowance u/s 14A cannot exceed exempt income amount

Ashok Kumar V. Sanghi Vs ITO (ITAT Mumbai) ITAT Mumbai held that disallowance under section 14A of the Income Tax Act read with rule 8D cannot be more than the quantum of exempt income. Facts- On the basis of information received from ITD systems, reassessment proceedings in the case of assessee was initiated and notice u/s. 148 of the Act was issued on 17/03/2015 after recording of reasons. In response, assessee filed electronically return of income on 02/04/2015, declaring NIL total income. Pursuant thereto, statutory notices u/s. 143(2) and 142(1) of the Act were issued and assessee filed i...