State cannot tax benefit of wrong section 14A disallowance made by Assessee

DCIT Vs Bhilwara Energy Ltd. (ITAT Delhi) The assessee filed return of income declaring a loss of 16.13 crores. The assessee company suo moto disallowance an amount of Rs. 9.9 crores consisting of interest of Rs. 9.5 crorees and other expenses of Rs. 40 lakhs on account of disallowance u/s 14A read with Rule 8D. Before the AO, the assessee pleaded that the amount has been wrongly disallowed suo moto and hence, remission be granted from the returned income. The fact that the exempt income received by the assessee of Rs. 2,093 (Rupees Two thousand and ninety three only) not been in dispute. The ...