Disallowance u/s 14A restricted to the extent of exempt income

DCIT Vs Anant Raj Limited (ITAT Mumbai) ITAT Mumbai held that disallowance under section 14A of the Income Tax Act cannot exceed the amount of exempt income. Hence, AO directed to restrict the disallowance to the extent of exempt income earned. Facts- The solitary issue contested in the ground of appeal of the revenue is directed against the decision of ld. CIT(A) in holding that disallowance u/s 14A cannot exceed the exempt income. Conclusion- Hon’ble Supreme Court in the case of State Bank of Patiala (2018) 99 com 286 (SC) and Hon’ble Delhi High Court in the case of CIT Vs. Joint Investm...