Disallowance of expenditure u/s 14A unjustified without any dividend income from equity investment

Emerson Electric Company (India) Pvt. Ltd. Vs Addl. Commissioner of Income Tax National Faceless Appeal Centre (ITAT Mumbai) ITAT Mumbai held that since the assessee has not earned any dividend income from its equity investment during the year disallowance of expenditure under section 14A of the Income Tax Act read with Rule 8D of the Income Tax Rules is not sustainable. Facts- The assessee is engaged in the business of developing and exporting software, providing engineering services and IT enabled services, and manufacturing of horns and electric motors for elevator application. Notably, AO ...