No Disallowance U/s. 14A if Assessee have sufficient Own Funds to make Investment

CA Sandeep Kanoi The Brief facts of the case are that assessee company is engaged in the business of manufacturing and dealing in flexible packaging material. During the assessment proceedings u/s 143(3) read with section 143(2) of the Income Tax Act,1961 , the assessing officer noticed that the assessee company has received dividend of Rs. 48,925/- which was claimed as exempt income by the assessee company . The assessee company was asked to explain why the expenditure incurred and claimed in respect of the afore-stated exempt income should not be disallowed as per section 14A of The Income T...