Disallowance u/s. 14A cannot exceed exempt income, No S. 14A Disallowance in the absence of nexus between exempt Income and Interest Cost

ACIT Vs. Punjab State Coop & Marketing (ITAT Chandigarh)– The assessee has placed on record the details of investment along with the amount of investment in shares in five companies made by the assessee. On perusal of the said details reveal that majority  of the investments were made prior to 1994 and on the said investments no dividend has been received by the assessee during the year. The assessee had received the dividend of Rs. 3,96,000/- from Indian Potash Supply Agency Madras, in which the investment was made between the years 1970 to 1975. Another dividend of Rs. 4410/- rece...