Section 14A cannot be invoked when no exempt income was earned

Punjab and Haryana High Court in CIT vs. M/s. Lakhani Marketing Inc, ITA No.970 of 2008 (O&M) , Dated- 02.04.2014 made reference to two earlier decisions of the same Court in CIT Vs. Hero Cycles Limited, 323 ITR 518 and CIT Vs. Winsome Textile Industries Ltd 319 ITR 204 to hold that Section 14A cannot be invoked when no exempt income was earned. HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 970 of 2008 (O&M) Date of decision: 02.04.2014 Commissioner of Income Tax Vs. MIs Lakhani Marketing Incl. CORAM: HONORABLE MR. JUSTICE AJAY KUMAR MITTAL HONORABLE MR. JUSTICE JASPAL SINGH...